An optimal battery energy storage charge/discharge method

Implementing electric energy storage in distribution networks requires that the input and output of the storage units be controlled in a manner to achieve maximum economic benefit. This paper outlines an algorithm that ensures that the battery operate near or at its highest economic potential given predictions of Locational Marginal Pricing (LMP) and the time profile of demand. This is accomplished by using the application of the dynamic programming algorithm. This algorithm is increasingly accurate with complexity and is best coupled with computer simulation.