Multi-Objective Planning of Distributed Energy Storage Considering Distribution-Level Electricity Market Simulation

This paper proposes a multi-objective distributed energy storage planning method that couples distribution-level electricity market simulation to improve the coordination between storage investment, market participation, and distribution network operation. The method incorporates technical–market-based candidate-bus screening, joint energy and frequency regulation market clearing with endogenous price formation, and life-cycle economic assessment. An improved NSGA-II algorithm is employed to obtain the Pareto-optimal solutions, while the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) is used to select a compromise solution among annualized life-cycle net cost, nodal voltage deviations, and network losses. The proposed method is evaluated on an extended IEEE 33-bus distribution system using 24-h typical-day load and renewable generation profiles. Compared with the baseline scenario, the selected storage configuration reduces average network losses from 0.20135 MW to 0.08235 MW and average nodal voltage deviations from 0.028 p.u. to 0.019 p.u., while increasing the renewable energy accommodation rate from 81.73% to 95.63%. The resulting storage investment achieves a life-cycle net present value of CNY 0.8745 million with a simple payback period of 7.33 years. In addition, compared with the PSO-based energy storage planning method, the method proposed in this paper achieves greater economic benefits while effectively improving the system operating state. These results demonstrate the effectiveness of integrating electricity market simulation and life-cycle economic evaluation into distributed energy storage planning.