Economic Effect of Distributed Energy System with CHP and Battery Considering Flexibility Provision

With the high penetration of variable renewable energy, the power system stability becomes relevant and distributed energy resources such as combined heat and power system (CHP) and battery are expected to contribute to provide flexibility in power system. In this study, we proposed the operation method of such resources in the distributed energy system to analyze the effect of operation cost decreasing and optimal installed capacity with considering to the flexibility provision. The proposed method consists of an optimization model which is formulated by Mixed Integer Linear Programming (MILP). To integrate the demand-supply analysis model, the net present value (NPV) for 15 years is clarified to be increased by operating the CHP and battery with considering flexibility provision to the grid.