Bilevel optimal configuration of generalized energy storage considering power consumption right transaction

Abstract The energy storage system is a type of equipment that is widely used to reduce peak loads, but its development is restricted by the high cost. Flexible load is a kind of load resource that can be dispatched by power grid to reduce load demand, but its development is restricted by users’ comfort degree. Therefore, a generalized energy storage system (GESS) needs to be proposed to maximize users’ comfort degree and minimize the investment cost of energy storage equipment simultaneously. GESS includes a traditional ESS, demand response and electric vehicles which can effectively reduce the load demand if uniformly dispatched. The duality theory is introduced to solve the bilevel model, which is built to uniformly optimize the GESS configuration in the upper level and scheduling in the lower level. A novel energy loss model and relaxed second order cone power flow model are embedded in the lower level to reduce the energy loss and avoid power congestion problems. The 15-bus network and modified IEEE 123-bus network are used as examples to demonstrate the advantages of the GESS and PCR transactions. The simulation results show that the investment cost of the GESS is far lower than that of the traditional ESS, and the GESS peak shaving effect is better. The application of the PCR transaction enables maximum satisfaction of the power demand of users participating in the demand response. The overall operation cost of the energy storage system is significantly reduced from the perspective of the power grid and users, which is beneficial for the further promotion of energy storage technology in the power grid.