Energy dispatch schedule optimization for demand charge reduction using a photovoltaic-battery storage system with solar forecasting

A battery storage dispatch strategy that optimizes demand charge reduction in real-time was developed and the discharge of battery storage devices in a grid-connected, combined photovoltaic-battery storage system (PV+ system) was simulated for a summer month, July 2012, and a winter month, November 2012, in an operational environment. The problem is formulated as a linear programming (LP; or linear optimization) routine and daily minimization of peak non-coincident demand is sought to evaluate the robustness, reliability, and consistency of the battery dispatch algorithm. The LP routine leverages solar power and load forecasts to establish a load demand target (i.e., a minimum threshold to which demand can be reduced using a photovoltaic (PV) array and battery array) that is adjusted throughout the day in response to forecast error. The LP routine perfectly minimizes demand charge but forecasts errors necessitate adjustments to the perfect dispatch schedule. The PV+ system consistently reduced non-coincident demand on a metered load that has an elevated diurnal (i.e., daytime) peak. The average reduction in peak demand on weekdays (days that contain the elevated load peak) was 25.6% in July and 20.5% in November. By itself, the PV array (excluding the battery array) reduced the peak demand on average 19.6% in July and 11.4% in November. PV alone cannot perfectly mitigate load spikes due to inherent variability; the inclusion of a storage device reduced the peak demand a further 6.0% in July and 9.3% in November. Circumstances affecting algorithm robustness and peak reduction reliability are discussed.