Hierarchical Energy Management of Hybrid Battery Storage Systems for PV Capacity Firming and Spot Market Trading Considering Degradation Costs

Research output: Contribution to journalResearch articleContributedpeer-review

Contributors

Abstract

Lithium-ion batteries are currently one of the key technologies for a sustainable energy transition. However, they have a limited calendar and cycle lifetime, which are directly affected by operating conditions. Therefore, our goal is to maximize the benefits of a battery storage over its entire lifespan. Stacking multiple services (multi-use) can increase the utilization of battery storage, whereas coupling different storage technologies with complementary characteristics (hybrid energy storage systems) adds a degree of freedom for efficient and degradation-aware operation. To exploit these technological and economic advantages, we develop an energy management concept and demonstrate it in the application example of a grid-connected photovoltaic plant with hybrid battery storage. The multi-use application consists of capacity firming, participation in the electricity spot market, and peak shaving. To address the different temporal scales of the battery storage tasks, we propose a hierarchical energy management with two levels. The model predictive upper level energy management optimizes the grid power considering the time-varying electricity prices and marginal costs of battery storage operation. This multi-objective optimization problem is solved using a mixed-integer linear program with two-dimensional piecewise linearization of conversion losses and battery degradation costs. The strategy-based lower level energy management allocates power in real time to meet the grid power and ramp-rate requirements despite model and forecast errors. Extensive simulations demonstrate the advantages of the proposed approach owing to a better compliance with grid power requirements, lower conversion losses, and significantly higher benefits of the battery storage system over its lifetime.

Details

Original languageEnglish
Pages (from-to)52669-52686
Number of pages18
JournalIEEE access
Volume12
Publication statusPublished - 2024
Peer-reviewedYes

External IDs

Scopus 85190350163
Mendeley 9fcd3e9b-733f-3be2-879b-89eaf9c903ca

Keywords

Sustainable Development Goals

Keywords

  • Capacity firming, degradation costs, energy arbitrage, hierarchical control, hybrid energy storage system (HESS), lithium-ion battery aging, mixed-integer linear programming (MILP), multi-use, photovoltaic (PV) power integration, piecewise affine (PWA) approximation