Optimum hourly operation of a prosumer with battery energy storage system under time-of-use pricing

Abstract

A mathematical model for generation scheduling of a prosumer is proposed. The prosumer is capable of generating, consuming, and storing electricity. Energy storage is in form of battery. The prosumer may purchase or sell electricity with an electric utility under time-of-use pricing. The optimization problem for hourly operation of the prosumer is formulated as a mixed-integer programing problem and solved by using GAMS. It is shown that the purchase decision, capacity selection, and threshold condition of the battery can be derived by using hourly prices, battery efficiencies, and capital cost of battery. It is evident from numerical simulations that the prosumer can obtain minimum daily costs of operation.