Profit Maximizing Planning and Control of Battery Energy Storage Systems for Primary Frequency Control
We consider a two-level profit-maximizing strategy, including planning and control, for battery energy storage system (BESS) owners that participate in the primary frequency control (PFC) market. Specifically, the optimal BESS control minimizes the operating cost by keeping the state of charge (SoC) in an optimal range. Through rigorous analysis, we prove that the optimal BESS control is a "state-invariant" strategy in the sense that the optimal SoC range does not vary with the state of the system. As such, the optimal control strategy can be computed offline once and for all with very low complexity. Regarding the BESS planning, we prove that the the minimum operating cost is a decreasing convex function of the BESS energy capacity. This leads to the optimal BESS sizing that strikes a balance between the capital investment and operating cost. Our work here provides a useful theoretical framework for understanding the planning and control strategies that maximize the economic benefits of BESSs in ancillary service markets.
© 2016 IEEE. Date of Publication: 04 May 2016. Manuscript received October 7, 2015; revised March 2, 2016; accepted April 20, 2016. Date of publication May 4, 2016; date of current version February 16, 2018. This work was supported in part by the National Basic Research Program (973 Program) under Grant 2013CB336701, in part by the Research Grants Council of Hong Kong through General Research Funding under Project 2150828 and Project 2150876, and in part by the Theme-Based Research Scheme under Project T23-407/13-N. Paper no. TSG-01282-2015.
Submitted - 1604.00952.pdf