Optimal energy management for an islanded microgrid with battery degradation cost considerations

In recent years, there has been a growing focus on the role of battery energy storage systems in diverse applications within power systems. As the charging and discharging of batteries is closely tied to cell degradation, improper usage can significantly reduce the battery’s lifespan. For the optimal functioning of islanded microgrids with integrated energy storage systems, when both economic and functional considerations are taken into account, accurately determining and integrating battery degradation costs into the energy management problem is crucial. This study explores three distinct methods for calculating battery degradation costs and successfully integrates them into the optimal scheduling problem of an islanded microgrid. This approach not only prioritizes the efficient use of batteries but also ensures the microgrid operates with optimal parameters. The results obtained from these methodologies are compared, leading to valuable insights.