Economic assessment of energy storage options in generation expansion planning

Abstract

An efficient method to assess the economic feasibility of introducing a storage capacity alongside a conventional generation system is presented. The operational cost saving of the optimally operated storage capacity with the conventional system is determined using a production simulation model. This is optimised so that a generation schedule for a power system with a storage facility will accurately reflect the time dependency of storage operation policies through the charging and discharging processes. The optimum capacity of a storage facility is chosen to minimise the total revenue requirements and to satisfy the system reliability constraint for each year in the plan.