Optimizing Electric Bill Savings: Integrating Peak Shaving, Frequency Regulation, and Battery Performance

The study offers a method for reducing electric bills by combining peak shaving and frequency management with lithium-ion batteries. The integration of lithium-ion battery losses resulting from a dynamic model, cell deterioration, and power conditioning system losses along with the addition of the yearly cost model of uninterruptible power supply greatly improves the consumer’s comprehension of the electricity cost model. Utilizing the load profile of a business user, linear optimization is used on solely peak shaving model to explain how to improve the commercial customer’s generic electricity cost model. The CH75-6 lithium-ion battery losses combined with analytical considerations on Power Conditioning System losses are integrated into the already optimized model of the power bill. The mathematical results of the model revealed that the co-application of peak shaving, frequency controls, and other parameters such as the dynamic loss model, cell degradation constant, and power conditioning losses can assist commercial users in lowering their electricity bills.