• Corpus ID: 119115592

Power System Dispatch with Electrochemical Energy Storage

@article{He2019PowerSD,
  title={Power System Dispatch with Electrochemical Energy Storage},
  author={Guannan He and Soummya Kar and Javad Mohammadi and Panayiotis Panos Moutis and Qixin Chen and Jay F. Whitacre},
  journal={arXiv: Optimization and Control},
  year={2019}
}

• Guannan He, S. Kar, +3 authors J. Whitacre
• Published 16 April 2019
• Engineering
• arXiv: Optimization and Control

Battery storage is essential for the future smart grid. The inevitable battery degradation renders the battery lifetime volatile and highly dependent on battery dispatch, and thus incurs opportunity cost. This paper rigorously derives the degradation cost function of battery storage for power system dispatch. We first derive the intertemporal optimality condition that guarantees the long-term dispatch optimality when short-term dispatch is made. Then we prove that the solution to a cost-form dispatch model implies this intertemporal optimality condition and thus is also optimal from the long-term perspective. The derived unit degradation cost is time-variant to reflect the time value of money and takes the form of a constant value (the marginal cost of usage) divided by a discount factor. In case studies, we demonstrate the existence of an optimal value of the marginal cost of usage that corresponds to the optimal long-term dispatch outcome. We also show that the optimal marginal cost of usage depends on system and battery parameters, such as the marginal cost of the system and the battery cycle life.