Optimal BESS Sizing for Industrial Facilities Participating in RTP DR.

The predictability of their manufacturing lines allows industrial facilities to optimize their production scheduling and to participate in demand response (DR), in day-ahead, real-time pricing (RTP) electricity markets. Battery energy storage systems (BESSs) make the electrical demand of industrial facilities more flexible and increase their potential to benefit from DR. The BESS sizing problem, for industrial facilities participating in RTP DR, is complex due to the discreteness of their manufacturing lines and the stochastic nature of electricity pricing. In this paper, an approach to BESS sizing is proposed. Scenario extraction using k-means clustering is used to reduce the problem complexity, and the extracted scenarios are preprocessed to reduce the search space for the optimal size of the BESS. The steps involved in the proposed approach are demonstrated, in detail, through a case study that uses a generic model of an industrial unit. The results of the case study show the effectiveness and validity of the problem reduction techniques used and highlight the role of electricity storage in maximizing the profits of the industrial unit. Finally, a sensitivity analysis is carried out to illustrate the impact of the BESS installation cost on the results. [ABSTRACT FROM AUTHOR]