Cost-Efficient Deployment of Storage Unit in Residential Energy Systems

With the mushrooming of distributed renewable generation, energy storage unit (ESU) is becoming increasingly important in residential systems. This letter proposes a fractional programming model to determine optimal power, and capacities ESUs. The objective function maximizes ratio between reduced electricity tariff, investment cost ESU, ensuring minimal payback time. A decomposition algorithm developed solve program based on convex optimization; subproblem dual quadratic which provides cutting planes, master problem comes down linear after variable transformations. Compared widely used cost-minimum method, proposed cost-efficient: it enjoys higher rate return usually welcomed by small consumers.