Maximizing return on investment of a grid-connected hybrid electrical energy storage system

Author

Di Zhu ; Yanzhi Wang ; Siyu Yue ; Qing Xie ; Pedram, Massoud ; Naehyuck Chang

Author_Institution

Electr. Eng. Dept., Univ. of Southern California, Los Angeles, CA, USA

fYear

2013

fDate

22-25 Jan. 2013

Firstpage

638

Lastpage

643

Abstract

This paper is the first to present a comprehensive analysis of the profitability of the hybrid electrical energy storage (HEES) systems while further providing a HEES design and control optimization framework to maximize the total return on investment (ROI). The solution consists of two steps: (i) Derivation of an optimal HEES management policy to maximize the daily energy cost saving and (ii) Optimal design of the HEES system to maximize the amortized annual profit under budget and system volume constraints. We consider a HEES system comprised of lead-acid and Li-ion batteries for a case study. The optimal HEES system achieves an annual ROI of up to 60% higher than a lead-acid battery-only system (Li-ion battery-only) system.

Keywords

investment; lead acid batteries; lithium; HEES control optimization; HEES design; HEES system; Li; Pb; ROI; amortized annual profit; energy cost saving; grid-connected hybrid electrical energy storage system; hybrid electrical energy storage; lead acid batteries; lead-acid battery-only system; lithium battery-only system; lithium ion batteries; optimal HEES management policy; return on investment; Batteries; Discharges (electric); Investment; Lead; Maintenance engineering; Optimization; US Department of Defense;

fLanguage

English

Publisher

ieee

Conference_Titel

Design Automation Conference (ASP-DAC), 2013 18th Asia and South Pacific

Conference_Location

Yokohama

ISSN

2153-6961

Print_ISBN

978-1-4673-3029-9

Type

conf

DOI

10.1109/ASPDAC.2013.6509670

Filename

6509670