Optimal Operation of a Residential Battery Energy Storage System in a Time-of-Use Pricing Environment

Abstract

Premature ageing of lithium-ion battery energy storage systems (BESS) is a common problem in applications with or without renewable energy sources (RES) in the household sector. It can result to significant issues for such systems such as inability of the system to cover load demand for a long period of time. Consequently, the necessity of limiting the degradation effects at a BESS leads to the development and application of energy management strategies (EMS). In this work, EMSs are proposed in order to define optimal operation of a BESS without RES under time-of-use (ToU) tariff conditions. The objective of the developed EMSs is to reduce the capacity loss at the BESS in order to extend its lifetime expectancy and therefore increase the economic profit in the long-term. The EMSs utilize a widely used battery mathematical model which is experimentally validated for a specific BESS and a battery degradation mathematical model from the literature. Indicative simulation results of the proposed strategies are presented. The outcomes of these simulated scenarios illustrate that the objectives are achieved. The BESS operates efficiently by preventing premature ageing and ensuring higher economic profit at the long term.