Peak Shaving Through Battery Storage for Photovoltaic Integrated Building Considering the Time of Day Pricing

This paper has considered the feasibility of a battery storage system from peak demand reduction point of view under variable electricity energy pricing dynamics. The energy management approach described in this study seeks to reduce annual energy costs while maximizing battery energy throughput with grid restrictions acting as network demand limits for the performance evaluation of the investigated energy system in two scenarios. A typical building has been identified, where presently the PV system and grid supply is operated for meeting load requirements. The economics of the reference case with no battery storage (Case A) is compared with the economics of the battery storage plant that stores excess PV generation after self-consumption in the building (Case B). The analysis demonstrates that with an increase in storage size leads to a reduction in the energy cost till a certain point and any further increase beyond the critical point will increase the energy cost due to an increase in investment cost. The optimum value of battery storage in the present study is assessed as 1250 kWh and that result in annual financial savings of ₹7.3 lakhs under the time of day (ToD) regime. With falling battery storage prices, the payback period is anticipated to become shorter and more appealing in the near future. These comparative outcomes of the present study will provide input for government authorities and other stakeholders to develop regulations and policies for the promotion of battery storage. The active deployment of the battery energy storage systems within such types of installations, and its coordination with the other distributed energy resources will enhance the overall reliability, efficiency, and cost effectiveness of overall energy system. The modeling and simulation of the system are performed by General Algebraic Modeling System (GAMS).