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There has been a prevailing increase in the power generation from the rise of DERs. Due to which electricity produced is fluctuating in nature and also causes grid instability. To reduce this variability and avoid any grid failures, the load dispatch centers or DISCOMs provide their schedules for 96-time blocks each of 15-minutes intervals. The latest DSM amendment, regulation is given by CERC provides the methodology for calculation of deviation of real time actual power drawl from the scheduled power. In addition, regulation facilitate different kinds of deviation charges to be complied on these deviations and the accounting procedures for the same on day ahead, intra-day and real time basis.
The aim of this research work is to quantify the amount of penalties in 15-minute time block in the power distribution companies along with the economic feasibility of electricity storage in reducing the designated Net Deviation Charges. After analyzing the power deviation data, it was realized that the best way to reduce the revenue impact of the regulation is by deploying the BESS at the distribution-side and then facilitating their schedule to load dispatch center. An excel based tool was developed which has 3 sub models namely Battery Control Algorithm, Battery Degradation model and Cost Benefit Model. Thereafter, technical feasibility (due to varying DOD, C-rates, Battery size) and commercial feasibility (NPV, Annual savings, Project Cash flows) are calculated in the excel based model based on various Battery Technology. The work scrutinizes the used cases of grid-connected ESS (Li-ion) battery providing power system flexibility for deviation settlement mechanism and primarily CESC DISCOM using real-time deviation data of a month. It was found from the model, battery degradation instigated in the decision algorithm reveals a rapid pace operation of the BESS, which strengthens the battery’s lifetime expectancy and improves the project’s financial feasibility.
Keywords: 15-minute deviation settlement mechanism, deviation charges, Battery Energy Storage Systems (BESS), Li-ion batteries, Battery life degradation, Cost Benefit Analysis
