Battery Storage Utilization for Cost and Imbalance Reduction in a Balancing Group

Abstract

-In this paper, the theoretical optimum of a battery utilization in a balancing group for cost reduction and energy imbalance reduction is investigated. To estimate the theoretical optimum, an offline optimization of the battery schedule is performed over a horizon of one week. Different strategies are applied, prioritizing either the cost reduction or the energy imbalance reduction objective to investigate the potential to fulfill both objectives and to determine the trade-off between them. The investigation of the scaling effects of increasing the number of batteries highlights the advantages and disadvantages of the applied strategies. Finally, it is shown that batteries can be utilized to fullfill both objectives to a certain degree, but the potential is limited due to diminishing marginal benefit when increasing the number of batteries.