Cost benefit analysis of combined storage and distribution generation systems in smart distribution grid

A novel cost benefit analysis approach is proposed for the storage and distribution power and their combination when they are applied in smart distribution grid. The approach includes two parts, the cost-benefit analysis part and the operation simulation part. A life cycle cost analysis is addressed for the cost benefit analysis, which takes the working life of storages and distribution generations (PV in this case) into account. The operation simulation part takes charge in the simulation of the system, offers key parameters for the cost benefit analysis in real time based on the cost and the boundary conditions of the system. In such way, the bottom to up approach gives better understanding of the relation between cost and benefit. In particular, the comprehensive benefit of battery energy storage system (BESS) together with photovoltaic systems when applied in a given distribution grid is analysed, suggestions for the arrangement of the system are listed according to the simulation results.