Optimal Storage Planning for an Islanded Power System

Currently, the development of microgrids with distributed power sources is receiving growing attention. Integrating both traditional and renewable energy sources into the grid has presented some technical challenges, such as load balancing and frequency regulation. Auxiliary devices like Battery Energy Storage Systems (BESS) are necessary to ensure stable operations and increase the penetration level of renewable energy. However, the cost of investing in BESS systems is relatively high in the present and the future. This article presents a computational model to determine the optimal investment plan for BESS storage in the microgrid system of Bach Long Vi Island, Vietnam. The model is based on the Mixed-Integer Linear Programming (MILP) technique and solved using the PyPSA/CPLEX software. The input data are based on the actual operating data of the studied microgrid system. The multi-period investment framework is tested and its effectiveness is demonstrated by improved economic performance.