PV with Storage System for Demand Management

Solar power is a good option in reducing grid electricity demand. Solar Photovoltaic (PV) panel with Battery Energy Storage System (BESS) is increasingly used to utilize solar energy for peak demand reduction and consumer’s peak shifting from on-peak hour to off-peak hour. This paper presents a sizing methodology of BESS to reduce peak demand at desired percentage. An algorithm has been developed to schedule the charging and discharging power of BESS with an aim to reduce daily operation cost based on peak demand charge reduction and time of use (ToU) energy price. Variation of real-time demand and solar PV output has been addressed with adaptive control measures. The proposed algorithm is applied to residential and non-residential consumers whose peak demand occurs at evening and mid-day respectively. The result shows a promising reduction in consumer’s daily operation cost.