Expansion Planning Studies of Independent-Locally Operated Battery Energy Storage Systems (BESSs): A CVaR-Based Study

Nowadays, the high penetration of renewable energy resources, with variable and unpredictable nature, poses major challenges to operation and planning studies of power systems. Employing energy storage systems (ESSs) has been introduced as an effective solution to alleviate these challenges. Several studies have been presented in the literature to provide a framework for expansion planning studies of ESSs. However, they usually have two main drawbacks: i) ignoring the positive effect of independent-locally operated ESSs on the bulk power system preferences, ii) inability to model the charge/discharge schedule of independent-locally operated ESSs based on their investors' acceptable risk level. This paper amends the abovementioned shortcomings by proposing a new bi-level framework for expansion studies of ESSs, where the long-term total cost of bulk power systems and the scheduling of independent-locally operated ESSs are modeled in the upper level (UL) and lower-level (LL) problems, respectively. Moreover, the proposed methodology is formulated based on benders dual decomposition technique to effectively reduce the computational effort. Finally, the proposed methodology is implemented on the modified IEEE 73-bus test system, and the results reveal the effectiveness of the proposed ESS planning framework.