Economic performance of a grid-interactive system with storage under a dynamic electricity pricing environment

ABSTARCT :

This paper aims to evaluate the economic performance of a grid-connected system with storage under a dynamic electricity pricing environment with time-of-use (TOU) and feed-in electricity tariffs. The storage can assist in the demand side management as well as to reduce the electricity bill of the consumers. In this case, consumers would purchase electricity during off-peak pricing periods to charge the batteries, and during peak pricing periods, the energy stored would be used to supply the demand or sold back to the grid. Therefore, the two objectives are to minimize the cost of energy drawn from the utility, while maximizing the energy injected under the Time-of-Use and Feed-in-Tariff schemes. Thereafter, the performance of the developed model to maximize the proposed grid-interactive system’s economic profitability is analyzed through a case study which is simulated using Mat lab Simulation results show that a potential of 52% energy cost saving can be achieved using the proposed system rather than supplying the load demand by the grid exclusively.

EXISTING SYSTEM :

In most of the developed countries, the market-oriented electricity arbitrage process is used to promote the development of energy storage systems. From the grid point of view, the presence of arbitrage allows the grid to shift peaking demand by regulating the electricity prices using different strategies such as the TOU . However, an optimal energy control system is required to achieve minimal electricity cost by responding at the same time to the design and operational constraints of the system.

DISADVANTAGE :

• Power shutdown problems • Voltage Fluxvation • Increase electricity bill .

PROPOSED SYSTEM :

To help reduce their peak power demands and save money, many utilities are introducing programs that encourage their customers to use electricity during off-peak hours. The programs pass on the savings to you, the customer, through rebates or reduced electricity rates. Smart meters and home energy management systems allow customers to program how and when their home uses energy. Such programs might charge you the actual cost of power at any one time, ranging from high prices during times of peak demand to low prices during off-peak hours. If you are able to shift your power use to off-peak times -- such as running your dishwasher late in the evening -- these programs can save you money while helping your utility.

ADVANTAGE :

• No power Shutdown problem • Decrease Electricity Bill.