SOH Aware System-Level Battery Management Methodology for Decentralized Energy Network

The decentralized energy network is one of the promising solutions as a next-generation power grid. In this system, each house has a photovoltaic (PV) panel as a renewable energy source and a battery which is an essential component to balance between generation and demand. The common objective of the battery management on such systems is to minimize only the purchased energy from a power company, but battery degradation caused by charge/discharge cycles is also a serious problem. This paper proposes a State-of-Health (SOH) aware system-level battery management methodology for the decentralized energy network. The power distribution problem is often solved with mixed integer programming (MIP), and the proposed MIP formulation takes into account the SOH model. In order to minimize the purchased energy and reduce the battery degradation simultaneously, the optimization problem is divided into two stages: 1) the purchased energy minimization, and 2) the battery aging factor reducing, and the trade-off exploration between the purchased energy and the battery degradation is available. Experimental results show that the proposed method achieves the better trade-off and reduces the battery aging cost by 14% over the baseline method while keeping the purchased energy minimum.