Determination of optimal contract capacities and optimal sizes of battery energy storage systems for time-of-use rates industrial customers

Abstract

This paper sets up a formulation to determine the optimal contract capacities and optimal sizes of battery energy storage systems for time-of-use rate customers. The advanced multi-pass dynamic programming and expert knowledge base rules are then applied to solve this problem. Two industrial customers of the Taiwan Power Company System are used as examples to test this algorithm. Results show that the optimal sizes of battery energy storage systems and the optimal contract capacities of customers during the life cycle of battery energy storage systems can be achieved by this algorithm; therefore the maximum economic benefits of battery energy storage systems for time-of-use rate customers can be estimated.<>