Scheduling of Site Battery Energy Storage for Demand Response Capacity

We explore scheduling issues relating to coordination between battery energy storage (BES) and contractual demand response (DR) resources in daily operations where the two types of resources are partially interchangeable and interact with each other. The proposed formulation models the daily operations of BE Sand DR that considers not only the physical constraints of BES, energy prices, and consumer preferences, but also more importantly the contractual capacity obligations for DR and uncertainties in the DR activation by a utility or system operator. Example simulation results are used to illustrate operational scenarios of BES and DR that should be coordinated to achieve multiple objectives of reducing purchasing costs, reducing curtailments, meeting DR obligations, and planning contingent operations when the contractual DR capacity is activated.