Simulating Central Battery Storage Using A Levelized Incremental Cost Method

This paper describes a methodology for including central battery storage in hourly production simulation computer programs. As such, these simulation tools calculate detailed production statistics by modeling the hour by hour operation of a power system over the planning horizon. An example of such a production analysis code is GLIMPS, described in reference 1-2. By integrating the hourly operation of central storage into the unit commitment and economic dispatch routines, production analysis codes can be used to assess the production credits associated with the storage technologies. These credits can then be used to value central storage by determining the present worth production costs with and without storage over the planning horizon.