This study proposed the operation planning of the battery energy storage systems (BESS) to maximize the economic value in terms of life-cycle cost considering both the electric power self-consumption and peak load reduction. Toward this end, a bi-objective optimization model was developed in consideration of the economic net profit as well as the battery aging. An economic simulation was then conducted to create a configuration of the most cost-effective operation planning. As a result of the case study, the operation with limits on selfsufficiency rate and peak load reduction could raise the self-sufficiency rate by up to 22.1% and reduce the peak load by up to 29%, while the net present value (NPV) of the BESS was US$7,067.9 lower compared to the operation without such limits. The customers of the BESS with the PV systems can maximize their economic profits and the policy makers can establish plans for economic support schemes to improve the environmental performance of the BESS with the PV system.
Keywords Photovoltaic system, Battery energy storage system, Life-cycle cost, Bi-objective optimization, Economic simulation