Optimal allocation of energy storage system in distribution systems

In this paper, a methodology is proposed for optimally allocating energy storage system (ESS) in distribution systems with a high penetration of wind energy. The aggregated capacity of an ESS is determined so as to accommodate all amounts of spilled wind energy, and the ESS is optimally allocated in the system in order to minimize the annual electricity cost. The annual hourly wind speed and load profile are generated using the auto regression moving average (ARMA) technique and the IEEE-RTS system, respectively. Further, these data are incorporated in order to determine the annual cost of spilled energy and the optimum allocation of the ESS in the distribution system. A cost/benefit analysis was also conducted by comparing the annual cost of different ESS techniques with the total profit for both the utility and the distributed generation (DG) owner. The results show that integrating an ESS with the distribution system for the proposed application is economically feasible only when the least expensive ESS is used.