Reliability–flexibility integrated optimal sizing of second‐life battery energy storage systems in distribution networks

Abstract Second‐life batteries (SLBs), which are batteries retired from electric vehicles (EVs), can be used as energy storage systems to enhance the performance of distribution networks. Two issues should be addressed particularly for the optimal sizing of SLBs. Compared with fresh batteries, the failure rate of SLBs is relatively high, and timely and preventive replacement is needed. In addition, the flexibility introduced by EVs and installed SLBs should be coordinated to achieve optimal economic benefits. This paper focuses on the efficient utilization of SLBs by highlighting reliability‐flexibility concerns in optimal sizing. The model is formulated as a bi‐level model. On the upper‐level, considering the operational reliability constraints of SLBs, decisions regarding the investment and replacement of SLBs are optimized. Distribution network operations are improved on the lowerlevel, with an effective spatiotemporal flexible dispatch strategy for EVs. Finally, a linearized process for the optimal sizing of SLBs is presented and efficiently implemented. The Sioux Falls network and IEEE 69‐node distribution network are coupled as the test system. According to the simulation results, when the state of health of the SLBs decreased to 70%, the conditions were unreliable. The differences in the optimal SLB size and costs considering reliability and flexibility are highlighted.