An Amp-hour based electricity cost model for economic dispatch of batteries in microgrids

This paper presents a novel model to calculate the unit price of electricity stored in a battery at each time instant based on charging resources and battery characteristics. When multiple sources of energy contribute in charging a battery either simultaneously or during different time periods, this model keeps track of the battery charging history and calculates an overall cost of energy from the battery. It also updates the unit price of electricity from a battery based on the required discharge power in order to consider the changes in battery capacity at different discharge rates. Calculating an accurate unit price of energy for a battery helps system operators and energy management systems in economic dispatch applications for microgrids with energy storage units. Simulation and experimental results are presented in order to show effectiveness of the proposed cost model.