Business case of optimization model for spanish grid connected photovoltaic battery household system

Abstract

Given the natural advantage in abundant and reliable solar resources, Spain is ideal for developing renewable energy generation with photovoltaics.Thanks to the supportive legislations, advances in technologies and reduction of costs, residential electricity consumers are increasingly incentivized to actively participate in managing thei rconsumption and installing distributed generation units. Several studies have suggested that battery storage coupled with solar photovoltaics (PV) can benefit both households and the electricity grid. These facts call for a model to help house holds determine the composition of their grid; connected photovoltaic battery system based on the specific situations in Spain.

This paper proposes an optimization;based mixed integer linear programing model for the sizing and scheduling of residential battery storage co-located with solar PV in the context of present self;consumption regulation and three tariff schemes(the 2.0A,the 2.0DHA,and a newly proposed three; period tariff).The objective function for the household is to minimize the annualized electricity expenditure while satisfying the current electricity demand and constraints.To illustrate the model, a 5-spaces household in Sevilla is selected as an example. The load of the appliances is model ledby aload generation model with statistical data of appliances and time-of-use information.The optimization model is built with mixed integer linear programming (MILP) method in GAMS.

Besides the business as usual case,100 scenarios are created to discover the best combinations when PV/battery prices decrease to different levels. The future scenario analysis is helpful to discover future uncertainties,tipping points,and better regulatory incentives.

The results of the paper contribute in the following three aspects:

• Provide guides for the investment decision of the households to take advantage of PV/batteries to minimize the expenditure. • Test the performance of the tariff schemes and test the sound ness oft he future. • Provide suggestions for the regulators ond esigning incentives.