1. Power System Dispatch With Marginal Degradation Cost of Battery Storage
- Author
-
Panayiotis Moutis, Javad Mohammadi, Guannan He, Jay Whitacre, and Soummya Kar
- Subjects
Marginal cost ,Battery (electricity) ,Discounting ,Opportunity cost ,Computer science ,State of health ,020209 energy ,Energy Engineering and Power Technology ,02 engineering and technology ,Reliability engineering ,Time value of money ,Electric power system ,Smart grid ,Optimization and Control (math.OC) ,FOS: Mathematics ,0202 electrical engineering, electronic engineering, information engineering ,Electrical and Electronic Engineering ,Mathematics - Optimization and Control - Abstract
Battery storage is essential for the future smart grid. The inevitable cell degradation renders the battery lifetime volatile and highly dependent on battery dispatch, and thus incurs opportunity cost. This paper rigorously derives the marginal degradation cost of battery for power system dispatch. The derived optimal marginal degradation cost is time-variant to reflect the time value of money and the functionality fade of battery and takes the form of a constant value divided by a discount factor plus a term related to battery state of health. In case studies, we demonstrate the evolution of the optimal marginal costs of degradation that corresponds to the optimal long-term dispatch outcome. We also show that the optimal marginal cost of degradation depends on the marginal cost of generation in the grid., 11 pages, 4 figures
- Published
- 2021