Determination of Optimal Battery and Renewable Capacity Investment for Hybrid Energy Storage Systems

Hybrid Energy Storage Systems (HESS) that combine renewable power sources with battery storage have gained increasing attention as a means of providing reliable and cost-effective renewable energy. However, determining the optimal battery, wind and solar capacity investments for these hybrid system remains a significant challenge. This study aims to address this challenge by proposing a comprehensive methodology that combines various factors, such as renewable forecasts, energy prices, investment costs, and battery charging/ discharging patterns, with mixed-integer linear programming model. The objective is to maximise the contribution margin available from the system configuration while matching the technical and financial criteria. The results show that the optimal investment capacity varies according to given scenarios of energy prices, wind conditions and costs. The proposed model can provide valuable insights for policymakers, investors, and energy stakeholders in promoting the development and deployment of HESS. This research also provides solutions for optimizing HESS investments and for optimal operation of battery systems.