Market-Based Energy Management Model of a Building Microgrid Considering Battery Degradation

This article presents a model for energy management system of a building microgrid coupled with a battery energy storage. The model can be used to dispatch the battery as a flexible energy resource using a market-based setting. The battery is modeled considering battery degradation and real-life operation characteristics derived from measurements at a residential building. The performance of the model was evaluated first with simulations and integrated afterwards to an energy management system, which was demonstrated at a real residential building (HSB Living Lab) equipped with photovoltaic and battery storage systems. The simulation results showed that the building owner, and subsequently the residents, could benefit from the proposed model in reduced annual cost up to 3.1% under the considered pricing scheme. The demonstration results showed that dispatch under the measurement-based model could decrease the undelivered energy over the daily requested amount from the battery from 13.3% to 3.7%. Thus, the proposed model, which couples the measurement-based dispatch with battery degradation, can lead to a more accurate estimation of the building operation cost and an improved overall performance of battery as a flexible resource in building microgrids.