Optimal Sizing of Electrical Energy Storage Systems using Inventory Models

This paper adopts a single-period newsvendor model with supply uncertainties to be used for optimally sizing an electrical energy storage system (EESS) for an apartment house with a photovoltaic (PV) system. Hence, typical inventory cost components and supply chain characteristics are translated to the EESS application. The results show that inventory management and energy storage can be aligned. The optimal size of the EESS takes into account the total cost of the storage system including energetic losses as well as the costs for energy supply from the own energy systems and from the energy supplier.