Optimization Of Distribution Systems Incorporating Distributed Generation and Battery Energy Storage Assets

Abstract

The introduction of new technologies like Distributed Generation (DG), Battery Energy Storage Systems (BESS) and Smart Meters, called collectively Distributed Energy Resources (DER), introduce new challenges and opportunities for the Distribution Network Operator (DNO). Thus, proper planning is required to ensure that a cost-effective solution is obtained that can improve on the system affordability. This paper deploys a multi-stage stochastic algorithm to minimize the cost of the Distribution System (DS) which consists of the Distribution Network (DN) and Customer costs. This paper proposes a central planning approach where the decision variables are the sizing, siting, and operation of BESS, along with the sizing and siting of DG and Capacity of the distribution lines. The algorithm estimates the optimal BESS’s energy storage capacity and the maximum hourly delivery capacity. The customers’ objective function is the capacity and energy payments minus the savings and revenue from the DG. The DNO’s goal is to minimize the cost of the distribution network and BESS’s investments and operational costs. Since the model has a long-term approach to planning, the paper presents the implementation of Expected Value as decision criterion to handle the uncertainty and the impact of the remuneration rules for DG (i.e., Solar PV) on customers’ and DN’s cost are calculated. The results show that the incorporation of Solar PV brings savings to the customers while the BESS in addition can provide modest improvements in network performance