Cost-Benefit Analysis for Proactive Consumers in a Microgrid for Transactive Energy Management Systems

Abstract

This paper proposes the installation of a battery energy storage (BES) system along with a PV system in a hierarchical transactive energy management (TEM) framework to reduce consumer's electricity bills. An algorithm is developed to control the charging and discharging cycle of the proposed battery in a TEM system. A new cost benefit analysis (CBA) approach is presented for solar energy systems and combination of photovoltaic (PV) units and BES systems when these are installed in a proactive houses. Economic benefit analysis is based on real time electricity rate and battery cost to give an exact idea of returns and yearly savings to consumers on their investment. Real load and generation data are used for the analysis and based on the developed algorithm the appropriate battery size is determined. When it is integrated with a 4kW PV unit, it reduces the power mismatch between the load demand and solar generation. The result shows that proactive consumers can maximize their savings considerably on solar investment by installing BES systems.