Battery Energy Storage Operating Plan to Maximize Wholesale Power Cost Reduction for Electric Cooperatives in PJM Open Access
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This praxis addresses the operational dispatch and economic benefit of battery energy storage systems (BESSs) for electric distribution cooperatives in PJM. The applied research uses day-ahead market (DAM) signals and load forecast data from the PJM market to develop a battery Energy Storage Operating Plan (b-ESOP) for optimizing the scheduling and decision making for charging and discharging of battery energy storage systems.The b-ESOP recognizes the stacked revenue potential of battery storage systems capable of satisfying both energy arbitrage and demand response (DR) services. The operating plan addresses conflict between daily energy arbitrage opportunities and specific coincident peak demand reduction strategies and their respective expected values. As load-serving distribution utilities, electric cooperatives may pursue opportunities to dispatch energy storage systems in the PJM market, as well as pursue opportunities to reduce purchase power energy costs and monthly demand billing determinants through tariff-based wholesale power supply contracts.The operating plan will inform the utility by providing a probabilistic, day-ahead strategy selection and optimized schedule for storage system dispatch in order to maximize reduction in wholesale power costs.