Battery Energy Storage Management to reduce electricity cost in USB Building

Literature Review

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Abstract

Buildings microgrid is arising as an important solution for electrical energy distribution networks, which provides the ability to integrate renewable energy generation, storage and consumption devices. Among these microgrid functionalities, the combination of energy storage batteries and energy management method allows the system to achieve different kind of benefits such as increase network robustness, reduce energy cost and reduce energy consumption costs.

The objective of this literature review is to give an overview of the main concepts regarding battery storage management in microgrid. The first section gives an introduction about smart grids including background and functionalities. The second section explains about the battery storage definition and functionalities. The third section, gives an approach of battery modelling process considering two different methods. The fourth section presents two battery storage management strategies that controls the battery charge and discharge process aiming to decrease electricity cost and load demand peaks. The fifth section describes the project context and the proposed work. Finally, conclusions are presented in section 6.

Contents

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Section 1: Introduction to Microgrid technology

Section 2: Battery energy storage system

2.1 Definition and background

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2.2 Functionalities

2.3 Battery storage classification

Section 3: Battery storage modelling

3.1 Battery modelling using electric circuits

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3.2 Battery modelling using state of charge

Section 4: Battery Energy Management

4.1 Background

4.1 Battery Energy Management aiming load shifting and price reducing

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4.2 Battery Energy Management Arbitrage

Section 5: Project background and proposal

5.1 Project background

5.2 Project proposal

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Section 6: Conclusion

References

Section 1: Introduction to Microgrid technology

Definition: A microgrid is defined as a small scale combined energy systems to localise the electricity production by the means of distributed generators, renewable resources and loads [1].This system can be defined as a part of a smart grid which can be interconnected one another to form a big smart system.

Figure 1 Microgrid basic configuration[2]

On the one hand, this intelligent system has several functionalities that distinguishes it from a distribution network:

• Voltage and frequency stability: the system includes methods to control voltage and frequency in the microgrid based on active and reactive power control. The battery storage system is incorporated to the system in order to contribute to limit or control the power transmission through the line [3].
• Saving costs and energy management functionalities: the system can handle energy to obtain optimal, reliable and efficient operation between all stakeholders (For example: distribution companies, customers, government). The battery storage application reduces the peak demand and consequently the billing and the investment for peak power handling [4].
• Managing fluctuations in renewable resources: With the using of battery energy storage systems, the microgrid system can solve issues such as uncertainty and intermittency or renewable resources. The battery storage systems improves the response against  wide load fluctuations frequency and voltage instabilities by using optimal dispatch strategies[2].

On the other hand, there is a big economic potential for decentralized distributed generation because it allows to companies to have control even though it covers big areas.

Section 2: Battery energy storage system

2.1 Definition and background

The constant need for efficient energy storage system has brought new technologies that have improved the robustness and price of the system. An advanced battery storage can be defined as an electrochemical solution that accumulates energy and supplies when it is needed. This system includes several components such as computers or controller, battery stacks, electrolyte tanks, pumps and forecasting processor; however, the components may vary due to its material type and field application [5]. Regarding emerging market needs, Energy Storage Systems (ESS) is one of the most important solutions to deal with energy fluctuation, service continuity and frequency issues when renewable sources are connected to grids [6].For example, the expectative in the United States for system is around 152GW by 2050, the main users will be the individual and small consumers[7].

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2.2 Functionalities

The combination of renewable energy resources and unpredictable environment are increasing the complexity and uncertainty in distribution systems. As a result of this, the application of BESS has significantly grown in power systems area in the recent years. Furthermore, in many countries, BESS has been an alternative to ensure stability against power variations and control frequency along and with other applications[8].Besides, it is playing a vital role due to its advantage of fast dispatching of energy when there is a high demand either in high and low power applications such as homes and buildings. Maximizing economic benefit is the main challenge; therefore, multiple revenue streams which means the using of several BESS functionalities in the same system in order to co optimize and increase the revenue against the investment.

2.3 Battery storage classification

Significant development is going on the battery storage technology. In the table 1 and the table 2 the Solid and Flow batteries characteristics are explained respectively:

Table 1 Solid batteries characteristics

adapted from *[6, 9]