Optimal ESS allocation for load management application

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 (ESSs) offer a number of benefits that can help utilities move toward those goals. One of those benefits is the capacity to improve the utilization of network infrastructure by means of proper load management. This paper proposes a methodology for allocating ESSs in distribution systems in order to defer system upgrades, minimize system losses, and take advantage of the arbitrage benefit. The cost and arbitrage benefit of energy storage installation are optimized with respect to system upgrade and energy losses costs. The primary goal of this research is to determine the optimal size and location of storage units to be installed, in addition to their optimal operation, so that total system costs are minimized, while system benefits are maximized. In this paper, a probabilistic load model is adopted instead of utilizing time-series based models, which provide an optimal solution that is valid only for the time-series pattern that is applied.