| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 243990 | Applied Energy | 2011 | 13 Pages |
Storage devices and demand control may constitute beneficial tools to optimize electricity generation with a large share of intermittent resources through inter-temporal substitution of load. This paper quantifies the related cost reductions in a simulation model of a simplified stylized medium-voltage grid (10 kV) under uncertain demand and wind output. Benders Decomposition Method is applied to create a two-stage stochastic optimization program. The model informs an optimal investment sizing decision as regards specific ‘smart’ applications such as storage facilities and meters enabling load control. Model results indicate that central storage facilities are a more promising option for generation cost reductions as compared to demand management. Grid extensions are not appropriate in any of the scenarios. A sensitivity analysis is applied with respect to the market penetration of uncoordinated Plug-In Electric Vehicles which are found to strongly encourage investment into load control equipment for ‘smart‘ charging and slightly improve the case for central storage devices.
Grahical abstractThe model informs an optimal investment sizing decision as regards specific ‘smart grid’ applications such as storage facilities and meters enabling load control. Results indicate that central storage facilities are a more promising option for generation cost reductions as compared to demand management.Figure optionsDownload full-size imageDownload as PowerPoint slideHighlights► Stochastic versus deterministic model increases investment efficiency up to 5%. ► Deterministic model under-estimates value of load control and storage. ► Battery storage is beneficial at investment cost below 850 EUR/MW h. ► Demand management equipment is not beneficial at cost beyond 200 EUR. ► The stylized 10 kV grid constitutes no shortage factor.
