Effects of a Battery Energy Storage System on the Operating Schedule of a Renewable Energy-Based Time-of-Use Rate Industrial User under the Demand Bidding Mechanism of Taipower

Abstract

Due to the increased development of the smart grid, it is becoming crucial to have an efficient energy management system for a time-of-use (TOU) rate industrial user in Taiwan. In this paper, an extension of the direct search method (DSM) is developed to deal with the operating schedule of a TOU rate industrial user under the demand bidding mechanism of Taipower. To maximize the total incentive obtained from the Taiwan Power Company (TPC, namely Taipower), several operational strategies using a battery energy storage system (BESS) are evaluated in the study to perform peak shaving and realize energy conservation. The effectiveness of the proposed DSM algorithm is validated with the TOU rate industrial user of the TPC. Numerical experiments are carried out to provide a favorable indication of whether to invest in a BESS for the renewable energy-based TOU rate industrial user in order to execute the demand bidding program (DBP).