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Optimization of Storage Systems According to the Criterion of Minimizing the

Cost of Electricity for Balancing Renewable Energy Sources

Conference Paper · October 2020

DOI: 10.1109/KhPIWeek51551.2020.9250155

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 Optimization of Storage Systems According to the
Criterion of Minimizing the Cost of Electricity for
Balancing Renewable Energy Sources
Stanislav Fedorchuk, Andrii Ivakhnov, Olexii Bulhakov Dmytro Danylchenko
dept. «Electric Power Stations» dept. «Electrical Power Transmission»
National Technical University National Technical University
"Kharkiv Polytechnic Institute" "Kharkiv Polytechnic Institute"
Kharkiv, Ukraine Kharkiv, Ukraine
[email protected] [email protected]

Abstract— The article is devoted to the issues of integration In this regard, the question of power balancing is very
of renewable sources into existing energy systems. The main acute, due to the use of highly maneuverable power stations
stages of this process, problems associated with them and the and systems for the accumulation of electricity (CHP).
ways to solve are considered. The method of choosing the Traditionally, as highly maneuverable stations, variants of
configuration of the accumulation system is proposed and the thermal and gas turbine power stations or HPSs are
result of calculating the cost of 1 kWh from accumulation considered.
system is applied to the main stages of using accumulation.
Thermal power plants mean high specific fuel
Keywords—renewable energy sources, accumulation, consumption, its deficit and environmental pollution. Gas
intelligent networks, forecasting. turbine power plants mean limited reserves of organic gaseous
or liquid fuels, environmental pollution. The third option
I. INTRODUCTION requires significant investment and is limited by free water
resources, there are also controversial points of view on the
Today, the integration of renewable energy (RES) is one environmental impact.
of the main tasks for the power systems of many countries,
including Ukraine, which is committed to increase their share The most promising, in our opinion, is the usage of ESS
up to 20% of the total generation by 2035. [1]. The global located near consumers or sources of imbalance.
development of generation at the RES along with the positive
In order to assess the imbalances in time generation, we
sides has a number of negative consequences associated with
conducted studies based on 10-year statistics on the volume of
chaotic generation, a decrease in quality of electric energy due
consumption and possible solar and wind energy generation
to the large number of converters, the complication of
based on 10-year statistical data of a particular region. This
maintaining the balance of active and reactive power, as well
allowed us to make a prediction of the required power of the
as the need to have high-maneuverable power which appears
ESS. Proceeding from this, the task was to estimate the
even more rigidly.
specific cost of electricity for the end consumer at different
types of accumulation.
II. INTEGRATION OF RENEWABLE SOURCES
The analysis of options for the integration of renewable III. SELECTION OF ELECTRICITY ENERGY SOURCES
sources has two directions, which can be conventionally CONFIGURATION
called centralized and decentralized [2]:
In terms of cost minimization, for the optimal choice of
The first option is based on the construction of renewable ESS is necessary:
power sources and is typical to traditional networks. In order
to implement it, it is necessary not only to choose the right 1) Determination of the optimally required capacity of
place for the installation, while focusing on the environment, ESS.
but also take into account the possibility of joining the existing 2) Determination of the tariff for the planned power plant.
networks, considering the issues of reliability.
3) Calculation of economic aspects of the usage of ESS.
The second option involves the usage of small power
plants situated near consumers, which leads to decreasing of 4) Calculation of economic aspects for converting
losses and costs on the transmission of electricity. Nowadays equipment.
this trend has gained significant development, in Ukraine as 5) Calculation of economic aspects of the transmission of
well, at the expense of domestic consumers who have installed electric energy from ESS to consumers.
solar panels and wind generators working at a green tariff. The
reason for this was stimulating cost of purchasing surplus 6) Calculation of economic aspects for management
energy, which is tied to euro, simplifying the issuance of system.
permits and guaranteeing the purchase of state-produced 7) Choose the territory of accommodation.
electric energy.
Estimation of the optimally required volume of ESS can
In both cases, the main problem for the grid is the chaotic be based on:
nature of the regenerative generation, and its instability over
time and dependence on weather conditions, which is a • specific norms. The recommended level of reservation is
deterrent to implementation in many countries. from 80 to 100% of the power of the renewable source;

XXX-X-XXXX-XXXX-X/XX/$XX.00 ©20XX IEEE

 • power system capabilities. If a significant part of the implementing a management system for a large number of
region's load is covered by renewable sources and there is a small subsystems. However, even a partial implementation of
shortage of capacity, the ESS should cover this deficit; the SGAM-template allows us to embody the concept of
virtual power stations. This solution simplifies the interaction
• the results of the previous computer simulation. between generation and accumulation by switching from the
Forecasting or synthesis of the possible load and weather interaction of generation-each ESS to the interaction of the
conditions for a long period, and is also based on the data of generation-control system of the ESS complex. A similar
the emerging imbalance, allows us to calculate the optimal situation exists in the case of interaction between the power
amount of ESS. Due to significant investments and as a result grid and a set of generators and ESSs situated locally.
of large depreciation deductions, the optimal amount of ESSs The selection of the volume of accumulation depending on
is one of the mainstays of the problem of optimal use of ESS. the results of the previous computer simulation.
The selection of the volume of accumulation depending on More precise results for the pre-selection of ESS
the specific indicators and type of use. The Lazard Report [3] equipment may be achieved through previous modeling. At
covers most of the possible scenarios for the use of ESS and the moment, there are a large number of computer programs
forms the five categories of systems depending on it. Despite that allow high-accuracy simulation, both the work of
the fact that the report focuses on chemical accumulators, it
individual generating objects, and their combined work with
can be supplemented to other types of ESSs. In addition, the the addition of ESS.
Lazard report may also be supplemented to the Energy
Storage Association [4]. The model of a hybrid generation system can be created
by using standard elements from the SimPowerSystem library
So, to determine the tentative capacity of the drive, it is to work with renewable energy sources. This option ensures
possible to focus on specific characteristics, depending on the the high correspondence of the results with real experimental
type of use. The data is based on the world-wide experience research and is suitable for the creation and study of models
of using ESS and can be used at the initial stage of modeling of control systems and transients.
of the system being designed. Also possible designs are based
on a combination of several uses. For example, it is possible To analyze the power balance of a distributed electric
to conclude an agreement between the generating stations and network with a RES-based generation, a model was created in
the commercial or household ESSs for use as a reserve. Simulink environment of Matlab package, which is shown in
Similarly, within a microwave network, there may be several Figure 1. The loading and weather conditions correspond to
commercial SES and a large number of household sources. Starobilsk in December. The models of the main nodes are
taken from the basic package of Matlab and
The obstacle to such a decision in the current realities of SimPowerSystem.
the power grid in Ukraine may be the complexity of

Fig. 1. Hybrid generation system model

Due to the fact that in distributed networks most solar 1) Photoelectric system. The base model uses an example
panels and wind turbines are situated relatively locally, it is of a solar panel with an inverter and an MPPT controller from
possible to imagine that they will have similar weather the base package Simulink. As the input signals to the system
conditions. The developed model consists of: were given hourly solar and temperature mode.
 2) Wind turbine. Input - hourly wind speed. 4) Accumulation system consisting of a lithium ion
battery, an inverter, a rectifier and a control unit. This system
3) Load. A block of three-phase dynamic load with a can be operated manually and automatically. The second
control signal, the schedule of which corresponds to the option is based on the difference in generation and load
operating conditions of the region, was used. capacities. A more detailed model is shown in Figure 2.

Fig. 2. Block of modulation of the accumulation system

5) System of infinite power. This unit acts as a balancing stations on the renewed energy sources. On the basis of
feature, which allows you to determine the surplus and lack modeling, values of consumption and generation of active
of energy at any given time. power for each of the systems were obtained, their graphs
Such a system allows us to investigate the short-term are shown in Figure 3.
operation of the distributed network with several power

Fig. 3. Simulation results

The simulation took place in a simplified format (formula For a 24-hour consumer energy cycle, the active
1), but even though it is possible to trace the balance of involvement of a system of infinite power needs to be actively
capacities in the system created. involved, as the generation from renewable sources is unstable
and its schedule does not coincide with the consumption
∑ 𝑋SPP ∙ 𝑃SPP + ∑ 𝑋WPP ∙ 𝑃WPP + ∑ 𝑋𝐸𝑆𝑆 ∙ 𝑃RSS + schedule. As we see, ESS reduces energy flows with a system
𝑋grid ∙ 𝑃grid = 𝐵 + ∑ 𝑏 (1) of infinite power, but it is not enough to completely eliminate
Where: X – the number of units of generating or them.
accumulating equipment of equal power; This variant of the model allows to evaluate individual
P – the power that can give the unit of equipment at a elements of the network, approximately determine the
specific time according to the results of the previous required amount of ESS and its necessary parameters.
modeling; However, for the study of a long period, it requires significant
design capacity.
В – consumption of the region at a specific time according
to the results of the previous modeling; In order to analyze the power balance in the long run, such
a modeling device requires very powerful computing and a
b – network losses; long calculation period. There is a certain number of
SPP – parameters relating to solar power stations; simplified models of solar and wind power plants, which
calculates only the output power, does it much faster than in
WPP – parameters relating to wind power plants; the previous version and allows to predict the balance of
power for the consumer.
ESS – parameters related to energy storage systems;
 It is for this purpose that it is possible to use a variant of At the next stage, it is necessary to clearly define the
the model, which leads only to calculation of active power purpose of using generating and energy generation systems.
balance, based on the levels of output power from power The possible configuration is formed on the basis of two
stations and RES. In this case, the accuracy of the calculation extreme variants, or an average between them. These options
is lower, but this may partially be corrected by adding are autonomous work of the region at the expense of RES and
empirical elements to the model. An example of a model of reserve, or the use of RES for partial coverage of the load in
this type is shown in paper [5]. the presence of the system as the main source of energy.
At the initial stage of the analysis it is necessary, for the Maintenance of autonomous work of the selected region is
objects of the network to be designed, to identify the following based exclusively on renewable energy sources, high-power
characteristics: electric power stations and ESS. In this case, the project
optimization is to choose the ratio of generating capacities and
• types of generating equipment with their parameters. capacities for ESS, which will ensure a reliable supply of
This is necessary for the correct adjustment of the SPP and energy to the consumer.
WPP models;
• data on temperature, solar radiation, wind speed with as IV. CALCULATION OF THE VALUE OF 1 KW∙H FROM THE
denser intervals as possible. It is also necessary to analyze not ENERGY STORAGE SYSTEM
only a separate year, but, if possible, a long weather interval
for several years; Determination of the tariff for the projected system of
accumulation is in case if it is planned to use the existing ESS
• data on the forecast load as denser as possible. to the approved tariff. An example can be the PSP with the
Depending on the purpose of the electric power stations in the Ukrainian-approved tariff for 2018 at the level of 2.8888 UAN
RES and the energy storage systems, these data have a very per kWh.
large impact on the future design of the project. As it is
possible to form a number of criteria for choosing the optimal Accumulation system. Depending on the availability of a
power of power plants and ESS. standardized tariff, it may include the following economic
indicators: depreciation of ESS equipment, servicing and
• geographic conditions to verify the possibility of salaries of personnel, the cost of electricity losses when
installing such types of accumulation as HPSS and ESSs in charged and discharged, as well as losses from self-discharge.
compressed air. In the case of using ESS with a well-known tariff, the first two
According to the results of the initial stage, a series of input items are not taken into account.
data for the model is formed, as well as selected systems to be However, to assess the utility of installing energy
modeled. Input data is generated in time series, the form of accumulation systems. In the general form, the formula for the
which is shown in paper [5]. purchase of equipment for the accumulation of 1 kWh is as
It is proposed to use ESS to compensate the deviations of follows [7]:
the predicted generation value from the real one. In this case,
it will be enough to cover the excesses or shortcomings of Price
LCOE = ( ) + Total anc. cost 
electricity, taking into account network losses. At the same Capacity∙Cycles∙Efficiency∙DoD
time, based on distributed generation and accumulation it is
possible even to minimize the associated losses when where LCOE (Levelized Cost of Energy) - the cost of
installing ESS in the immediate proximity to stations at the stored energy;
RES. Price - the cost of equipment;
In predicting generation, one can rely on the experience of Capacity - capacity of ESS;
Germany as one of the flagships of the introduction of Cycles - number of cycles;
renewable generation. According to [6], for medium-term Efficiency - efficiency of the system taking into account
forecasting, the accuracy for a single installation is 20%, for a the transformation of the DC to the alternating and vice versa;
large power plant 5-7%, and for the whole region 4-6%. Depth of discharge - optimal discharge depth;
Total anc. cost - total additional costs.
The results are shown in Fig. 5. Lazard offers a slightly different option for calculating the
cost of storing electric energy [3], graphical representation of
the formula can be seen in Figure 5.

Fig. 5. Graphical representation of the formula Lazard

Fig. 4. Results of the model of optimization of the volume of the drive.

 Energy storage modules. The modules consist of ESS and Management system. Amortization. - Depends on the type
their control system. It is possible to include storage batteries, of equipment and communication.
a water tank or compressed air in the ESS.
Management system. Service. - Depends on the type of
Anti-emergency system. Includes a set of devices for equipment and communication.
monitoring, preventing and eliminating emergencies. For
example, control the temperature of the energy storage Rent of land. - Depends on the occupied space, tariffs and
modules or control transmission system parameters[8]. owner.

Energy conversion systems. Includes equipment for Supplement - The country is regulated by the additional
changing the type of current (constant / alternating), switching cost of electric energy.
equipment and control system. Uses dc / dc, ac / dc, dc / ac Based on these components, it is possible to formulate
converters and switches for direct and alternating current. equations for each type of ESS and case of use. Consider the
Transmission of electric energy. When choosing the replacement of peak generation. In this case, it is possible to
methods of transportation of electric energy it is necessary to use a HPSS and a chemical accumulator. For HPSS it is
consider the possibility of using an existing transmission necessary to have two buffers, which actually makes it
system, or personal use. In the first variant, it is necessary to impossible to construct this type of ESS in close proximity to
most consumers. For example, in the realities of Ukraine, for
take into account depreciation deductions, staff salaries, losses
during transportation. In the second case, the first two the use of the PSP, transportation of electric energy with the
paragraphs are replaced by the tariff for the transmission of use of trunk and distribution networks will be necessary. The
electricity for this voltage class. full annual cost for each variant of the use of the HPSS will be
described by the following formula, according to the above
Control system. Includes selection of measuring components of the calculation of accumulation:
equipment, direct control system, its maintenance and
implemented algorithm of its work in software. Worldwide Cost = 350 ∙ (W ∙ val + ESSc + TEc + TEv + TSr) +
practice establishes the annual cost of management of + CS𝑑 + TSd (3)
accumulation at the level of 80-100 $ per kW of installed
capacity, and the cost of its maintenance at 2% of the cost of For chemical batteries, there is no need for specific
the management system. geographic and natural conditions, and therefore we can locate
the ESS in close proximity to our consumer and use only
Territory of accommodation. It takes place on the basis of distribution networks. In spite of this, in some cases, we will
the design occupied area, the criterion of territorial proximity need to use all three types of networks at the same time.
to the object of potential imbalance and the possibility of
connecting to electrical networks. On the basis of the proposed methodology, compare the
cost of 1 kWh from the system of energy accumulation for the
To examine the cost of accumulation or energy delivery to HPP, lead-acid and lithium-ion drives. The comparison will
the network from ESS it is possible to divide its components be based on the following initial conditions:
into several factors. It is proposed to focus on three
categories - depending on the means of use, the amount of • Estimation of the required amount of energy
energy and technology. Components: accumulation. Compare systems with a similar capacity at
400,000 kWh.
Standardized tariff - If a country has a regulated electricity
tariff, the price share will be constant and independent of some • Duration of daily work from 2 to 6 hours.
factors. • Definition of the tariff.
ESS Amortization. - One of the main factors in the • Losses in charge and discharge will be calculated based
formation of the cost of accumulation. Depending on the on the total efficiency of 80% for the PSP and 98%. The self-
length of use of equipment for physical drives, and in the case discharge for the HPS is taken at the level of 0. Regarding the
of chemicals - from the number of cycles. chemical batteries oriented on the specific indicators of the
ESS Maintenance - Affects the annual cost of operating depreciation calculation, we conduct, depending on the
equipment. There are unassembled storage systems. investment and the number of cycles of charges, discharges
and maintenance costs of 1-6%.
ESS Losses - May be caused by the support of the
technological process and the process of charge-discharge. • Conversion system. Includes transformers such as
“ATDCTN 125000/330/110” and “TRDCN -125000/110” to
ESS Self-discharge - Depends on the state of charge and ensure the possibility of transmitting electric energy over long
external conditions. distances. In the case of chem the accumulators additionally
take into account the losses in the inverter based on the
Transmission of electric energy. Losses - Depends on the
average weighted value of the efficiency [9] 88,1%. For an
distance, the voltage class and the volume of energy.
DC-DC converter we accept an average efficiency of 89%.
Transmission of electric energy. Cost - Depends on
• Transmission of electric energy. It is carried out through:
voltage class, tariffs and energy
main grids with a voltage of 330 kV and a length of 300 km,
Energy conversion system. Depreciation - Depends on the 100 km of networks of 110 kV and 10 km of 10 kV networks.
type of equipment and process The payment for the transfer takes place in accordance with
the tariffs of the distribution and trunk networks of Ukraine.
Energy conversion system. Losses - Depends on the type
of equipment and process. The results of this calculation are shown in Table 1.
 TABLE I. RESULTS OF THE COMPARATIVE CALCULATION OF THE COST OF 1 KWH OF ELECTRIC ENERGY WITH THE USE OF DIFFERENT ESSS FOR
RESERVING GENERATION.
HPSS Lead acid energy storage Lithium-ion energy storage
Number of days of work per year 350 350 350
Daily amount of energy, kWh 400000 400000 400000
1535320 1035267
Depreciation of ESS, UAH.
74,28% 72,13%
2,63 11
Servicing CA, UAH.
0,00% 0,00%
288,85
Tariff Cost, UAH.
75,55%
231080 117860 53589
Cost of loss at charge or discharge, UAH.
15,11% 5,70% 3,73%
822,86 411,43
Cost of self-discharge loss, UAH.
0,04% 0,03%
Cost of losses when transmitting electrical energy, 4011 4801 3238
UAH. 0,26% 0,23% 0,23%
Payment for the transfer 102527 184584 184584
Electricity, UAH. 6,70% 8,93% 12,86%
99,71 99,71
Daily depreciation of converting equipment, UAH.
0,00% 0,00% 0,01%
13518 135309
Lost converting UAH equipment.
0,88% 9,71% 9,43%
19047 19047 19047
Depreciation of the management system, UAH.
1,25% 0,92% 1,33%
3809 3809 3809
Daily Maintenance Management System, UAN.
0,25% 0,18% 0,27%
Annual payment 535293119,2 723455204 502377988
per kWh 3,82 5,17 3,59

As we see from the calculations, the most advantageous accumulators will be able to somewhat replace the other
option is the use of ESSs based on lithium-ion batteries, which maneuverable sources of generation.
are more profitable than standard HPPs. However, lead-acid
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