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Optimal Sizing and Management of Battery Energy Storage Systems in Microgrids for Operating Cost Minimization

Abstract Microgrids are one of the best solutions to present energy crisis, where the expansions of distributed networks are not feasible. This is achieved with penetration of renewable energy sources along with suitable selection of Energy Storage Systems (ESS).The load demand can be supported with microgrid in the grid connected mode or autonomous mode by suitable sizing of DGs and BESS. Sizing of suitable ESS in terms of its capacity or discharge helps in shaving the peak demand and also maximizes the benefits related to their use. Various advantages to end-users can be provided by microgrid with ESS, like improvement in energy efficiency, minimizing overall energy consumption through distributed generations (DGs) and increasing reliability of power supply to the customers. All these advantages can be achieved by obtaining the optimal microgrid operating cost with ESS. One of the challenging tasks in Microgrids is obtaining optimal energy utilization of DGs to meet the load demand. This can be achieved through proper energy management in the microgrid by obtaining optimal power allocations of DGs and ESS. This paper presents an algorithm for microgrid operating cost minimization for 24 hrs time horizon with optimal power allocation of DGs considering randomness in DGs, with and without BESS. Accelerated particle swarm optimization (APSO), Jaya optimization (JAYA) technique and Linear programming based interior point algorithm (LP-IP) have been applied to minimize the operating cost of microgrid with optimal Energy management while selecting proper size of BESS. Simulation results obtained by PSO, APSO, JAYA and LP-IP solver based algorithms are compared for BESS size and microgrid operating cost for 24 hrs. Results of LP-IP solver based optimization algorithm are proved to be the most effective of all other algorithms in terms of cost reduction. Optimal sizing of BESS with energy management of DGs and BESS reduces the operating cost of microgrid meeting the load criteria.