Application of economic operation strategy on battery energy storage system at Jeju

Abstract

This paper presents the economical operation strategy to extend the lifespan of Battery Energy Storage System (BESS) and achieve the maximum profits of BESS under an uncertainty of wind power. The economical operation strategy considers the optimal charge/discharge schedule of BESS with battery physical constraints, a probabilistic wind power forecast, local grid codes and electricity trading prices. In Jeju Smart Grid pilot project, 855kWh Lithium-polymer and 250 kWh LiFePO4 type BESSs were applied for smoothing intermittent wind power and relieving a peak electricity load. After Energy Management System (EMS) collects various data from wind turbine, Battery Management System (BMS), Power Conditioning System (PCS), a connected grid, electricity market and weather forecast center, it decides the charge/discharge schedule of BESS and the best bid price in electricity market. Experimental results are then presented to meet the required performance and quantify the expected profits in terms of the life expectancy of BESS.