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Assessment of the impact of an incentive-based demand side management strategy over the sizing of BESS for Stand-Alone Microgrids

Abstract:

Demand-Side Management Strategies (DSMS) modify the patterns of consumption of the customers. A proper design of a DSMS can reduce the curtailment of renewable energy sources while increasing their consumption. Additionally, the inclusion of DSMS in the planning of Stand-Alone Microgrids (SAMG) can reduce the total costs of the project. Despite the benefits that DSMS can bring to SAMG, there is a paucity of literature exploring the potential impacts of apply DSMS in the planning of SAMG. In this regard, the present work aims to evaluate the impact of using DSMS in the planning of SAMG over the sizing of Battery Energy Storage Systems (BESS). The work uses a Disciplined Convex based methodology to size the SAMG using historic data of load and weather variables. A study case shows that the proposed methodology reduces the installed BESS capacity in 17.76%, and the Levelized Cost of the Energy in 20.08% on average.