Sizing and Profitability of Energy Storage for Prosumers in Madeira, Portugal

This paper proposes a framework to select the best-suited battery for-optimizing for peak demand shaving, energy arbitrage and increase-sufficiency in the context of power network in Madeira, Portugal.-in-tariff for electricity network in Madeira is zero, which implies with excess production should locally consume the excess generation than wasting it. Further, the power network {operator} applies a peak contract for consumers which imposes an upper bound on the peak power by the power grid interfaced by energy meter. We investigate the value of in Madeira, using four different types of prosumers, categorized based the relationship between their inelastic load and renewable generation. We that the marginal increase in the value of storage deteriorates with in size and ramping capabilities. We propose the use of profit per per unit of battery capacity and expected payback period as indices for the best-suited storage parameters to ensure profitability. This takes into account the consumption and generation patterns, profit, degradation, and cycle and calendar life of the battery. We also the inclusion of a friction coefficient in the original co-optimization to increase the value of storage by reducing the operational cycles eliminate low returning transactions.