Impact of shared battery energy storage system on total system costs and power peak reduction in commercial buildings

Abstract

The power system is experiencing an increasing share of renewable and intermittent energy production and increasing electrification. However, these changes are creating high power peaks, are straining the grid and call for expensive investments in expansions and improvements. This paper examines how the operational strategy of shared battery energy storage systems (s-BESS) can address these issues for commercial buildings with relatively high power peaks. Due to the uncertainty in long-term costs when subject to a measured peak (MP) grid tariff, the scheduling of the battery is optimised with a receding horizon control algorithm. The optimisation model is used on a Norwegian real-life case study to find the best possible configuration with an already existing battery. Although current Norwegian regulations challenge the possibility for shared metering and billing for a s-BESS configuration, the results show that the total system cost was reduced by 19.2% compared to no battery. The community peak was reduced by 17.8% compared to no battery and 6.22-17.5% compared to individual storage, which indicates that s-BESS is of value for the DSO as well.