DETERMINATION OF OPTIMAL-CONTRACT CAPACITIES AND OPTIMAL SIZES OF BATTERY ENERGY-STORAGE SYSTEMS FOR TIME-OF-USE RATES INDUSTRIAL CUSTOMERS

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