Optimal ESS allocation and load shedding for improving distribution system reliability

The recent deployment of distributed generation has led to a revolution in the use of distribution systems and the emergence of smart-grid concepts. Smart grids are intended primarily as a means of facilitating the integration of renewable energy sources and of achieving greater system reliability and efficiency. Energy storage systems offer a number of benefits that can help utilities move toward those goals. One of those benefits is the capacity to improve system reliability through successful islanding operation. This paper proposes a methodology for the cost-effective improvement of system reliability through the allocation of distributed storage units in distribution systems. The costs of energy storage installation are optimized with respect to reliability value expressed as customers' willingness to pay in order to avoid power interruptions. The primary goal of this research was thus to determine the optimal combination of storage units to be installed and the loads to be shed so that all possible contingencies can be effectively addressed. A probabilistic approach is therefore adopted that includes consideration of the stochastic nature of system components.