Energy Storage for Power System Planning and Operation

9Optimal Planning of the Distributed Energy Storage System

9.1 Introduction

Distributed generation (DG) has grown rapidly in recent years under the pressure of increased energy demand and environmental issues. High penetration of DGs can bring a significant impact on the existing distribution networks. The most serious problem is that the inherently high‐volatility integrated DGs could threaten the secure and economic operation of distribution networks [1]. Integrating the distributed energy storage system (DESS) into the distribution network with DGs is an option to solve this problem. DESS can act as an effective tool to perform demand‐side management, reduce the gap between load peaks and valleys, improve the utilization of electrical equipment and increase the penetration of renewable energy generation [2–4].

In recent years, many researchers have been studying the planning of DESS in the distribution network. Most researchers aim at optimizing the location, energy capacity, and power capacity of each DESS to minimize the total cost or to maximize the social benefits considering multiple factors, such as price arbitrage, active power loss reduction, uncertainty of DG power output, the life cycle of DESS, and so forth [5–10]. In reference [11], a convex optimization model is built for distribution network expansion planning integrating DESS. A method is proposed in reference [12] for the cost‐effective improvement of system reliability through optimal planning of DESS in ...