Limiting Energy Storage Cycles of Operation

Abstract

Batteries are an expensive form of energy storage, therefore, must be operated in an efficient manner. Battery life is often described a combination of cycle life and calendar life. In this work we propose a mechanism to limit the number of cycles of operation over a time horizon in a computationally efficient manner. We propose a modification in an optimal arbitrage algorithm proposed in our previous work to efficiently control the number of cycles of operation of a battery. The cycles of operation have to be tuned based on price volatility to maximize the battery life and arbitrage gains. We propose a mechanism to distinguish arbitrage returns.