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Utilization of existing generation fleets using large-scale energy storage systems

Nguyen, Tu A.; Byrne, Raymond H.; Trevizan, Rodrigo D.

In this work, we develop an optimization framework to evaluate the benefit of large-scale energy storage system (ESS) for utilizing an existing generation fleet that often operates at suboptimal working conditions due to peaky nature of the load. The objective is to find the optimal schedule for thermal units and the ESS that minimizes the daily system operating cost. This cost is the sum of the fuel cost, variable O M cost and start-up cost of all thermal units and ESS degradation cost. A case study is conducted to evaluate the operating cost savings by using ESS for a utility company in Alaska.