Optimal Sizing of Battery Energy Storage System (BESS) for Peak Shaving Under Malaysian Electricity Tariff

Peak shaving technique is used to reduce electrical power consumption during periods of maximum demand and saving substantial amount of money due to peak charges. The intermittent nature of solar photovoltaic (PV) resource imposes significant challenge in peak shaving. Since the Malaysian electricity tariff for commercial and industrial sectors are very high for maximum demand charges, the energy savings through optimal sizing of battery system will maximize the electricity bill savings. The Genetic Algorithm (GA) optimization technique used in this investigation is based on actual load profile. Technical and economic aspects such as battery efficiency, state of charge (SOC) and depth of discharge (DOD) and bi-directional DC/AC converter efficiency is considered for optimal sizing of battery energy storage system (BESS). The overall cost of BESS is crucial in response to the total energy savings to achieve good return of investment to implement this project in commercial and industrial sectors in Malaysia.