MINIMIZING BATTERY ENERGY STORAGE SYSTEM COST IN THE ELECTRICITY MARKET FOR VOLTAGE REGULATION APPLICATION IN THE POWER DISTRIBUTION SYSTEM

Abstract

High photovoltaic penetration in the distribution network can cause voltage violations due to reverve power flow. This paper proposes a method by using battery energy storage system (BESS) for solving this problem and achieving minimum cost. This cost is expressed through an objective function, which takes into account the cost of capacity loss and the cost of buying and selling electricity. In which, electricity prices are under market conditions and vary by time of day. The optimization problem results determine the nominal capacity of BESS and the optimal operation schedule. Simulations have implemented through MATLAB 2016a software and MATPOWER 7.1, which demonstrated the voltage regulation capabilities of BESS. With the operating schedule obtained from the simulation results, the grid voltage problem has been solved while achieving the lowest cost for BESS. The simulation changes the BESS installation location on the power grid, thereby proving that the economic efficiency of the method is also different for different installation locations.