Battery Storage System Optimization for Multiple Revenue Streams and Savings

Battery storage systems (BSSs) can be employed for a variety of energy services. Saving in utility charges is one of the revenue streams that can be achieved using a BSS. Demand charges (DC)-one of the major utility charges, especially for large electricity customers-can be reduced using BSSs. Furthermore, a BSS can gain revenues from other services such as demand response (DR) and energy arbitrage (EA). This paper presents an optimization formulation for the sizing and scheduling of the BSS to minimize the monthly energy bill through minimization of DC. Moreover, it counts for EA's revenue as well as the participation in winter and summer DR programs. Based on the market regulations of Ontario (Canada), this study investigates the potential of using BSSs for DC minimization and profit maximization from both EA and DR using real data for a large class-A Canadian electricity customer in Ontario. The results demonstrate the effectiveness of the proposed BSS deployment algorithm in minimizing the overall energy bills of the class-A customers.