Optimal Daily Storage Operation for Industrial and Commercial Load Management

Industrial and commercial electricity bills, generally include energy charge and demand charge, are significant expenses for the business. Equipping energy storage is a desirable option for user-side load management. This paper formulates a decomposition scheme for the maximum demand in a billing period so that the monthly demand charge can be integrated into the daily cost expression, together with the energy charge. Based on this, an optimal battery scheduling strategy under uncertainty is proposed to minimize the expected electricity costs. Further analysis deduces the convexity of the proposed model, which ensures global optimal solutions. The effectiveness of the proposed strategy is demonstrated by a comparison of examples. Also, the impact of the initial state of charge on cost reduction is evaluated.