Cooperative operation of energy storage system for minimizing total cost of multi-user

Abstract

This paper proposes the cooperative operation of energy storage system for minimizing total cost of multi-user. Although the battery prices have been falling in recent years, the profits earned from utilizing the energy storage system have still yet to be conspicuously large when considering initial installation and maintenance costs. Therefore, in this paper, we propose a model for mutually exclusive ownership of power stored in energy storage system and a model for power-sharing in energy storage system, that minimize the total cost of multi-user in a shared battery. The problem is formulated in a convex optimization under Korea industrial tariff system. We prove through the experiments that sharing an energy storage is a more effective way to reduce the payback period and maximum demand load.