Volume 5: Innovative Solutions for Energy Transitions: Part IV

Economic Benefits of Centralized and Distributed Storage Under Redistribution Tou Demand Tariff Junxiong Zhao, Menglian Zheng, Yi Ding

Abstract

A practical redistribution time-of-use (TOU) demand tariff which allows an aggregator to purchase electricity from grid and redistribute electricity to participants is adopted, a TOU upper demand limit storage control strategy is proposed and applied to a case study of a group of average U.S. households with centralized and distributed storage devices to provide demand response. The impact of the scale of group to provide centralized-storage-based demand response on the economic benefits is also studied. Results show that the proposed control strategy is economically viable and the smallest aggregation scale to obtain the lowest household-average total annual cost is found. The adopted tariff, proposed storage dispatch strategy and the result of this study can be applied to the design of a newly-built storage device sharing among multiple households to provide community-level demand response.

Keywords vanadium redox flow battery, redistribution tariff, dispatch strategy, community-level