Optimal Sizing and Control of Battery Energy Storage System for Peak Load Shaving

Battery Energy Storage System (BESS) can be utilized to shave the peak load in power systems and thus defer the need to upgrade the power grid. Based on a rolling load forecasting method, along with the peak load reduction requirements in reality, at the planning level, we propose a BESS capacity planning model for peak and load shaving problem. At the operational level, we consider the optimal control policy towards charging and discharging power with two different optimization objectives: one is to diminish the difference between the peak load and the valley load, the other is to minimize the daily load variance. Particularly, the constraint of charging and discharging cycles, which is an important issue in practice, is taken into consideration. Finally, based on real load data, we provide simulation results that validate the proposed optimization models and control strategies.