Energy Cost Minimization with Hybrid Energy Storage System Using Optimization Algorithm

Abstract

The purpose of this study is to develop an effective control method for a hybrid energy storage system composed by a flow battery for daily energy balancing and a lithium-ion battery to provide peak power. It is assumed that the system operates behind the meter, the goal is to minimize the energy cost in the presence of a PV installation (as an example of a local renewable source) and energy prices are determined by 3-zone tariffs. The article presents the application of an optimization method to schedule the operation of each battery in the system. The authors have defined an optimization method aimed at minimizing the total cost of the system, taking into account energy costs and batteries depreciation. The techno-economical model of the system, including battery degradation, is constructed and the cost optimization methods are implemented in Python. The results are validated with real energy and price profiles and compared with conventional control strategies. The advantages of optimization in terms of energy cost are discussed. The experiment shows that not only is a hybrid energy system successful in lowering the total operation cost and in increasing self-consumption but also that the implemented methods have slightly different properties, benefits and issues.