Coordinated planning of distributed WT, shared BESS and individual VESS using a two-stage approach

High investment cost is still by far a critical barrier to allocating battery energy storage system (BESS) in the electricity grid at an economical scale. On the other hand, utilizing thermostatically controlled loads (TCLs) through demand response (DR) programs is considered as a cost-effective way to manage renewable energy intermittency and improve grid efficiency. The thermal buffering capacity of air-conditioned households can imitate the physical energy storage system and consequently be viewed as the virtual energy storage system (VESS). This paper proposes a two-stage planning model for the optimal allocation of the distributed wind turbine (WT), shared BESS and the optimal dispatch of individual VESS in a smart grid. Based on the sharing economy, a novel energy banking model is presented in this paper. Customers give up their individual BESS ownership but have a collective arrangement, in which participants mutualize access to power dis/charge services and pay a rental fee. Energy exchange may be performed directly on a peer-to-peer basis, or indirectly through a mediator. The proposed model is verified on the modified IEEE 14-bus system. Additionally, this paper investigates the coordination strategy of BESS and VESS to mitigate the fluctuation of renewable energy.