MILP formulation for generation and storage asset sizing and sitting for reliability constrained system planning

Abstract Energy storage systems can provide a series of benefits to improve the operation flexibility and reliability of electric power systems, but their size and placement in the power system are critical to achieving expected benefits. An optimal ES sizing and siting study is presented in this paper. The formulation considers long-term economic benefits all generation and ES technologies for optimal sizing and siting. Unlike other recent studies, the proposed MILP formulation consider reliability as planning parameter. It also considers different lifetimes of ES and other generation assets, and salvage values to compute the present value of benefits. Both long-term (several years) and short-term (hourly) power demand variation are accounted for optimal sizing generators and ES. The developed formulation provides optimal size, location and investment year (a complete investment plan) for all assets. It is a comprehensive, robust production-grade long-term asset planning formulation. The paper presents a detailed case study conducted with the Ward-Hale 6-Bus test system and IEEE 118-Bus test system. Results show that ES assets can be used to improve system reliability overcome network congestion.