Optimization-Based Operation of Distribution Grids With Residential Battery Storage: Assessing Utility and Customer Benefits

Increasing levels of distributed solar photovoltaic (PV) generation has created significant technical challenges in distribution networks, particularly regarding voltage regulation. Small-scale behind-the-meter battery storage is a key element in effectively overcoming such challenges, while offering financial benefits for customers. In this paper, we propose an optimization-based approach for dispatching power from residential-scale battery storage for grid support and customer savings, considering only local (behind-the-meter) measurements. The proposed approach takes into account the physics of the grid and both real and reactive power (coupled) for voltage regulation and grid loss reduction. The optimization-based approach, termed Local-Quadratic Program (L-QP), is formulated based on the linear power flow equations (LinDistFlow). The proposed L-QP is benchmarked against an approach in which real power is used to maximize the customer benefit, while reactive power is dedicated for voltage regulation. Numerical simulations with the IEEE 13 and IEEE 123 Node Test Feeders, which include realistic time-varying data for residential load and PV generation, demonstrate the technical advantages of the proposed approach.