Determination of optimal-contract capacities and optimal sizes of battery energy-storage system for time-of-use rates industrial customers

This paper sets up the formulation to determine the optimal contract capacities and optimal sizes of the battery energy storage systems for time-of-use rates customers. The advanced multi-pass dynamic programming and expert knowledge base rules are then applied to solve this problem. Two industrial customers in Taiwan Power Company System are used as examples to test this algorithm. Results show that the optimal sizes of the battery energy storage systems and the optimal contract capacities of the customers during the life cycle of the battery energy storage systems can be achieved by this algorithm; therefore, the maximum economic benefits of battery energy storage system in a time-of-use rates customer can be estimated.