Optimal capacity partitioning of multi-use customer-premise energy storage systems

Battery energy storage systems (BESS) are becoming a viable means for large commercial and industrial (C&I) customers to realize reliability improvements and service charge reductions. This paper investigates the operation and planning of customer-side-of-the-meter BESS that are simultaneously used for both purposes. For scheduling applications, a new multi-objective economic dispatch algorithm that accounts for battery cycling constraints is proposed for customers with net metering and a Time of Use (TOU) rate structure. For reliability applications, service point outage probability and outage cost models are presented to determine the economic value of standby energy capacity. Simulations are performed on a test C&I system with local generation resources using seven candidate storage systems. Service charge and outage savings solutions are combined to determine pareto-efficient partitioning of BESS energy capacity and assess the economic competitiveness of various storage technologies.