Optimizing Allocation of Battery Energy Storage System Capacity in Coordination with Contract Price in Distribution Network

Abstract

This paper presents a double-layer synergistic optimization method for battery energy storage system (BESS) allocation considering contract price. From the point of view of the distribution company (DISCO) operator, the upper layer explores the potential benefits of the BESS configuration and set reasonable BESS charge and discharge price. From the BESS operator point of view, the lower layer on the basis of the upper layer given contract price, to determine BESS optimal capacity and optimal power allocation, as well as the charge and discharge power at any times. This paper uses the improved particle swarm optimizer to solve the problem and introduces Cauchy-Gaussian reduction mutation factor to adjust the local optimal extremum. An improved IEEE-33 nodes system is studied. Cases analysis shows that the method proposed in this paper allows both DISCO and BESS operators to be profitable.