Economics of Energy Storage Devices in Interconnected Systems - A New Approach

The simulation of energy storage devices in power systems for economic analysis has generally been attempted as a linear program formulation. This report suggests a new method that includes the effect of machine outage and non-linear nature of cost of production of energy. The probability density function (PDF) of hourly loads is the starting point of the method. The method has proposed the concepts of shifting the PDF to a "target" to honor the energy constraints and has shown that the modifications to the PDF can be easily obtained from the cumulative distribution function (CDF)