The paper by Ph.D. students Jie Shi, Yuanqi Gao, and Prof. Nanpeng Yu entitled “Degradation-aware Operation and Optimal Sizing of Behind-the-meter Battery Systems for Commercial Customers,” won the 1st Prize Best Paper Award among 188 accepted papers accepted at the IEEE Power and Energy Society Grand International Conference & Exposition Asia 2019.
This paper develops an innovative degradation-aware dispatch optimization algorithm to improve the profitability of battery energy storage systems. The proposed method explicitly considers the battery degradation effects and limits the charging/discharging rates when it provides less valuable energy shifting service. A comprehensive battery lifetime valuation framework is built on top of the degradation-aware dispatch optimization algorithm to estimate the net present value of battery energy storage systems. Compared to the existing algorithms, the proposed degradation-aware dispatch optimization increases the net present value of battery by almost 20%.