IEEE TRANSACTIONS ON SMART GRID, VOL. 5, NO.

2, MARCH 2014 1129

Power System Reliability Impact of Energy Storage

Integration With Intelligent Operation Strategy
Yixing Xu, Student Member, IEEE, and Chanan Singh, Fellow, IEEE

Abstract—Electric power industry is experiencing a movement Energy price for period

from the existing conventional electric grid to a more reliable,
efficient and secure smart grid. In order to achieve these goals, Forecasted energy price for future period
components such as energy storage will be included, and poten-
tially in large scale. Many feasible applications of energy storage
in power systems have been investigated. The major benefits of Utilized renewable energy in period
energy storage include electric energy time-shift, frequency regu-
lation and transmission congestion relief. In this paper, we focus Forecasted renewable energy utilization
on the reliability improvement of the bulk power system brought in period
by the utilization of energy storage in the local distribution sys-
Available renewable energy in period
tems integrated with renewable energy generation. An intelligent
operation strategy for energy storage which improves reliability Forecasted available renewable energy
considering the renewable energy integration is presented. The
in period
smart grid communication and control network is utilized to
implement the proposed energy storage operation. A bulk power Energy purchased in power market for
system reliability evaluation framework is proposed to study period
the reliability impact brought by the energy storage integration
and operation. A detailed case study and sensitivity analysis is Energy planned to be purchased in future
performed to demonstrate the effectiveness of the presented oper- period
ation strategy and evaluation framework, and to provide valuable
insights on the power system reliability impact derived from the State of charge level at the end of period
energy storage integration.
Index Terms—Bulk power system, electric energy storage, model Energy storage minimum state of charge
predictive control, reliability, renewable energy resources.
level
Energy storage maximum state of charge
NOMENCLATURE level
Energy storage charging efficiency
Power charged to energy storage in Energy storage discharging efficiency
period
Energy storage maximum charging I. INTRODUCTION
power limit
Power discharged from energy storage
in period I N the environment of smart grid, new infrastructure and
technologies are put into place for better information flow
and communication between all stakeholders in the system, in-
Energy storage maximum discharging cluding generation entities, system operators, and distributions
power limit system load aggregators [1]. By taking advantage of the com-
Load in current period munication network, useful local and global data and informa-
tion could be sent and received from each entity in a timely
Forecasted load in future period fashion. With the rich and timely data and information, players
in the power system can make better decisions to improve reli-
ability and economy for themselves and for the system. In this
Manuscript received January 08, 2013; revised June 19, 2013 and August 09, paper, energy storage devices are operated with an intelligent
2013; accepted August 11, 2013. Date of publication August 21, 2013; date of strategy which fully utilizes the data and information received
current version February 14, 2014. The work reported here was supported in
to make charging or discharging decision in order to improve
part by a PSERC Project. Paper no. TSG-00015-2013.
The authors are with the Department of Electrical and Computer Engineering, the economy of the local distribution system and improve the
Texas A&M University, College Station, TX 77843 USA (e-mail: yixing@neo. bulk power system reliability. Considering the increasing pen-
tamu.edu; singh@ece.tamu.edu).
etration of renewable energy generation [2], the distributed re-
Color versions of one or more of the figures in this paper are available online
at http://ieeexplore.ieee.org. newable energy resources, such as wind and solar generation,
Digital Object Identifier 10.1109/TSG.2013.2278482 integrated in distribution systems are also considered.

1949-3053 © 2013 IEEE. Personal use is permitted, but republication/redistribution requires IEEE permission.
See http://www.ieee.org/publications_standards/publications/rights/index.html for more information.
1130
With the recent rapid development of energy storage tech-
nologies, and their flexibility during operation, interest in in-
tegrating energy storage into power systems to improve sys-
tems reliability and economy has been growing. A reliability
cost/worth evaluation method that can incorporate the impact
of wind energy and energy storage utilization in electric power
systems is presented in [3]. Authors in [4] evaluates system reli-
ability considering wind and hydro power coordination, where
hydro facilities with energy storage capability are utilized to al-
leviate the impact of wind power fluctuations and also improve
the system adequacy. A methodology for the operation of a hy-
brid plant with wind power and hydrogen storage to maximize
economic benefits in a market environment is presented in [5].
Researchers in [6]–[8] investigated the operation strategies of
energy storage on the bulk power system level and evaluated
the reliability impact.
Previous reported work has been mainly on the operations of
energy storage and renewable energy at the bulk power system
level and evaluate the corresponding reliability impact. How-
ever, more and more energy storage devices are being integrated
into the distribution system and used to support the distribu-
tion system operations. For example, in smart grid demonstra-
tion project funded by United States Department of Energy, the
community energy storage is deployed at DTE Energy to benefit
consumers, businesses, and utilities [9]. When energy storage
is operated to benefit the distribution system, it can also be
coordinated by the system operator to have an impact on the
bulk power system. The smart grid communication and con-
trol network makes the operation strategies possible which re-
quires real-time information and control signal communication
between multiple entities. This paper focuses on the reliability
impact on the bulk power system considering the energy storage
operation strategies within the distribution system and coordi-
nation by the bulk power system operator.
In this paper, the energy storage operation strategy for
distribution system load aggregator is presented to improve
the economy of distribution system by minimizing energy
purchasing cost in power market. Energy storage coordination
strategy for system operator is proposed to improve bulk
power system reliability taking into consideration the local
energy storage operations. In order to accurately quantify the
reliability impact brought by energy storage, a reliability eval-
uation framework based on sequential Monte Carlo simulation
approach is presented. The reliability impact of energy storage
is then studied and insights are gained.
This paper is organized as follows: Section II describes
the energy storage operation strategy in distribution systems.
Section III presents the energy storage coordination strategy
when there is a loss of load event. Section IV describes the
proposed reliability evaluation framework taking into consid-
eration the energy storage operation and coordination. Case
studies and insights are presented in Section V. Conclusion is
presented in Section VI.
II. ENERGY STORAGE OPERATION IN A DISTRIBUTION SYSTEM
In many electricity markets, small individual customers lo-
cated in a distribution system normally do not directly partic-
ipate in the electricity market to purchase energy they need.
IEEE TRANSACTIONS ON SMART GRID, VOL. 5, NO. 2, MARCH 2014
Instead, a load aggregator is an entity who participates in the
wholesale power market, and purchases the energy for its indi-
vidual customers and delivers the power to them.
Normally, load at a given time is determined by customers’
demand and is inelastic to price except considering demand re-
sponse. In some recently implemented demand response pro-
grams, load could be controlled (curtailed) during some periods
of time by system operator or customers could adjust their de-
mand according to real-time electricity price. Considering the
relative small scale of such demand program and the scope of
this work, in this paper, such demand response programs are not
considered. The load is assumed to be determined by customers
and inelastic.
In a market environment, a load aggregator’s objective is to
serve its customers reliably while minimizing cost. With the in-
tegration of energy storage devices, a load aggregator has more
flexibility in managing energy transaction and delivery.
The distribution network topology with energy storage and
distributed renewable energy is simplified as in Fig. 1. All the
loads, energy storage devices and distributed renewable energy
resources within this distribution system are modeled as lumped
components for simplicity. However, more detailed modeling,
such as distributed modeling along the feeders, could also be
used. The load in each period , , is inelastic. The en-
ergy storage can be charged with the power purchased in power
market and delivered from external grid. The energy storage can
also be discharged to support the load . Charging power
and discharging power of energy storage are con-
trolled by the load aggregator. Charging and discharging ef-
ficiencies are considered. More detailed energy storage model
could be used according to the specific needs. Imported power
is the power purchased in power market and delivered
through external grid in each period . If power is allowed
to be sold back to the external grid, could be negative,
which means power flows from the distribution system to the
external grid. This operation could occur when there is exces-
sive power generated from the distributed generation integrated
in the distribution system. Distributed renewable energy gener-
ation provides power to the distribution system. During
each period , the energy balance is formed with the load, dis-
tributed renewable energy generation, energy storage charging/
discharging power and the imported power. Load aggregator of
a distribution system participates in the wholesale power mar-
kets to purchase electric energy to serve its customers in the dis-
tribution system. Meanwhile, load aggregator is also assumed
to operate the renewable energy generation and energy storage
integrated in its served distribution system. Renewable energy
generation can be controlled by curtailing available renewable
energy output. Energy storage devices are operated by deter-
mining the charging/discharging operations. The objective of
the load aggregator is to serve its customers with reliable power
supply while minimizing the electric energy purchasing cost in
power market.
The following assumptions are used in the study of the
system. Only the active power is considered. The power loss is
not considered. Voltage levels are assumed to be properly regu-
lated. These assumptions are normally acceptable in reliability
analysis.
XU AND SINGH: POWER SYSTEM RELIABILITY IMPACT OF ENERGY STORAGE INTEGRATION
Fig. 1. Simplified distribution system integrated with energy storage and dis-
tributed renewable energy generation.
A. Modes of Operation
With the integrated energy storage and distributed renewable
energy generation, the load aggregator of the distribution system
has more flexibility during operation. It can utilize the flexible
control of the energy storage to adjust the imported power from
the power market and manage the variable and intermittent re-
newable energy generation. Considering the component failures
and congestions in the power systems, the distribution system
with renewable energy generation and energy storage are oper-
ated in four modes: Grid Connected Mode, Coordination Mode,
Islanding Mode, and Failure Mode.
Operation Strategy in Grid Connected Mode: In grid con-
nected mode, there is no fault within the distribution system;
external grid could deliver the required power to the distribu-
tion system. In this mode, power from external grid, renewable
energy generation and energy storage can all be utilized to serve
the load. The objective of the load aggregator is to minimize its
energy purchasing cost in power market while meeting the de-
mand. The management of energy supplies is crucial in deter-
mining the energy purchasing cost.
In the environment of smart grid, new infrastructure and tech-
nologies are put into place for better information flow and com-
munication between all stakeholders in the system. By taking
advantage of the communication network, useful data and infor-
mation could be sent and received from each entity in a timely
fashion. With the rich and timely data and information, load ag-
gregators can make better decisions to achieve their goal. En-
ergy storage devices are operated with an intelligent strategy
which fully utilizes the data and information received to make
operation decisions in order to improve the economy of the
local distribution system. A Model Predictive Control (MPC)-
based operation strategy is proposed to minimize the energy
purchasing cost by optimally coordinating the energy purchase
from the power market, energy storage charging/discharging op-
eration, and utilization of renewable energy generation. Before
further describing of the proposed operation strategy, power
market modeling and energy storage modeling are introduced
first.
In this paper, the power market is simplified as a real time
power market model. During each market period (e.g. 5 min-
utes), the amount of energy needed is determined by load ag-
gregator. Then it submits its offer to get that needed amount
of energy in the market. The energy price is determined by the
market clearing mechanism. Load aggregator is assumed to be
1131
a price taker. Thus, the energy purchasing cost for periods
starting from period is
(1)
The energy storage unit is modeled by its operation limits
which include energy storage maximum and minimum state of
charge level, charging/discharging power limit (short for power
limit in this paper), and charging/discharging efficiency. The
state of charge at the end of each period is determined by the pre-
vious period state of charge level and the charging/discharging
operation during this period, it is expressed as
(2)
All energy storage operation variables are within their oper-
ation limits.
Many methods have been developed for load forecasting [10],
[11], renewable energy forecasting [12], [13], and energy price
forecasting [14]–[16]. Load aggregator could utilize these tech-
niques to obtain short term forecasts of load, available renew-
able energy and energy price to determine the operation. As
forecasting methods are not the focus of this paper, the fore-
casted information is assumed to be given.
The basic procedure of MPC is that a finite-horizon optimiza-
tion problem determining the series of optimal control opera-
tions is solved before each control step, but only the first control
operation is implemented [17]. After implementing the first con-
trol step, the system updates the actual state of the system and
the future states using a predictive model. Then the control rou-
tine is repeated to determine the next step’s operation. Applying
the above MPC approach, energy purchasing cost minimization
problem at period can be implemented as follows:
1) Obtain the actual load, available renewable energy and
price in the current period .
2) Select a receding optimization horizon of periods (e.g.
24 hours). Use load, renewable energy and price forecast
models to obtain the most updated load, renewable energy
and price forecasts for the next periods, from period
to .
3) Solve the optimization problem, formulated as follows.
Objective: Minimizing energy purchasing cost from period
to
(3)
The first part is the energy purchasing cost of the
current period . The second part is the
predicted total energy purchasing cost of the following periods
from to . and are the decision variables
to be solved.
Constraints:
i. Energy storage operation constraints
(4)
(5)
(6)
1132
where .
ii. Available renewable energy constraints
(7)
(8)
where . The utilized renewable en-
ergy is equal to or less than the available renewable en-
ergy. Extra energy is curtailed according to the operation
constraints. For example, by controlling the pitch angle
of blades of wind turbine, the wind power output can be
curtailed [18].
iii. Power balance constraints
(9)
(10)
where . Load, available renew-
able energy, and price in current period are the actual
values and known. While load, available renewable en-
ergy, and price in future periods are predicted using fore-
cast models, thus are given parameters for the optimiza-
tion problem. The solution of this optimization problem
gives an optimal operation schedule for energy storage
charging/discharging operation, energy purchase and re-
newable energy utilization from period to . of charge, load forecast, and renewable energy forecast. With
1) Implement the first period’s operation of the solved opera-
tion schedule, which is the current period .
2) Update the energy storage state of charge level, move to
the next period, and repeat the algorithm from step 1.
The short-term (e.g. next 2–3 hours) forecast is relatively
more accurate than the longer term (e.g. 23–24 hours) fore-
cast. The load, renewable energy and price forecasts are updated
according to the newest information after each operation step.
Then the most updated forecasts could be effectively integrated
into the operation decision making process to minimize the en-
ergy purchasing cost. Better operation for current period can be
determined by taking into consideration the future load, renew-
able energy and price.
The solution for energy storage operation schedule is optimal
with respect to the given forecast. The accuracy of the fore-
cast will affect the optimality of the operation schedule, because
of the differences between the forecast and the actual values,
such as wind power output. In the case study of this paper, we
have assumed the forecast to be perfect but if information on
characteristics of forecast uncertainty were available, it could
be incorporated in the determination of the schedule. The pro-
posed MPC-based operation strategy could significantly mit-
igate the negative impact caused by the forecast errors. This
strategy constantly updates the forecasts, and utilizes the most
accurate short-term forecasts to determine the current operation.
The detailed study regarding the impact brought by the forecast
errors could be found in our previous work [19].
IEEE TRANSACTIONS ON SMART GRID, VOL. 5, NO. 2, MARCH 2014
Fig. 2. Load aggregator communication and control network structure.
The structure of the communication and control network sup-
porting the operation strategy is presented in Fig. 2.
As shown in Fig. 2, load aggregator utilizes the smart grid
communication and control network to receive real-time up-
dated information and execute the operations. The received in-
formation includes energy price forecast, energy storage state
the forecasts information, load aggregator can use the MPC-
based operation strategy to determine the operations which in-
clude transactions in power market, energy storage charging/
discharging operation and renewable energy curtailment.
Operation Strategy in Coordination Mode: When the distri-
bution system is operated in grid connected mode, failures could
occur in the bulk power system. These failures could cause loss
of load events in the bulk power system. The bulk power system
operator could utilize the energy storage resources in the distri-
bution systems to avoid such loss of load events. This opera-
tion mode requires coordination between the local distribution
system load aggregator and the bulk power system operator. De-
tails of this energy storage coordination operation strategy are
presented in Section III.
Operation Strategy in Islanding Mode: In islanding mode,
the external grid cannot deliver power to the distribution system
due to failures in the external grid. The objective of the load ag-
gregator is to avoid or minimize load curtailment. The available
renewable energy is first utilized to serve the load. If it is not
enough to cover the load, energy storage is discharged to sup-
port the load. If there is extra renewable energy, it is stored in
energy storage for future usage. The extra energy which cannot
be stored in energy storage due to operation constraints is then
dumped.
Failure Mode: In this mode, there is a failure inside the dis-
tribution system. Power cannot be supplied either from the ex-
ternal grid or from the power sources within the distribution
system until the failure is cleared.
XU AND SINGH: POWER SYSTEM RELIABILITY IMPACT OF ENERGY STORAGE INTEGRATION
B. Energy Storage Operation Impact on the Distribution
System Economic Performance
The operation of energy storage could improve both the reli-
ability level and the economic performance of the distribution
systems. With the MPC-based operation strategy, the distribu-
tion system could obtain considerable economic benefits by op-
timally controlling the energy storage charging and discharging
operation. The detailed analysis regarding the economic impact
by the energy storage operation could be found in our previous
work dedicated to this topic [20]. Due to the page limitation and
the focus of this paper, the following sections will focus on the
reliability impact on the bulk power system through the energy
storage coordination.
III. ENERGY STORAGE COORDINATION
The energy storage integrated in the distribution system could
not only improve the local distribution system economy but also
contribute to the bulk power system reliability improvement.
During the energy storage operation in grid connected mode,
there is a certain amount of electric energy stored most of the
time. The real-time updated energy storage state of charge in-
formation is sent to the load aggregator. When a communica-
tion channel between a distribution system load aggregator and
the bulk power system operation is established, this real-time
energy storage SOC information can be also sent to the system
operator. As the system operator has the information of the bulk
power system, it can coordinate the power supplies and use the
energy storage integrated in the distribution system to support
part of the bulk power system’s load when there is a loss of load
event occurring somewhere in the system.
An unexpected outage of several generation units or simulta-
neous failures of several major transmission lines could cause
insufficient generation for the system or transmission conges-
tion. In either case, loss of load events could occur in the system.
In this situation, the system operator could analyze the energy
storage state of charge information which has already been col-
lected and determine whether and how to discharge the energy
storage in order to avoid the loss of load or reduce the un-
served energy, which subsequently leads to higher bulk power
system reliability. The coordination procedures during loss of
load events are as follows:
1) Identify the loss of load event.
2) Obtain the updated available energy storage SOC in the
system. Only the energy storage operated in the grid
connected mode could be utilized by the system operator.
During loss of load event, the operations required by the
system operator have higher priority over the operations
required by the load aggregator. During other periods, load
aggregator fully controls their energy storage operation.
3) Assess the available energy and power from energy storage
for a period (e.g. 5 minutes or one hour). Due to the limited
stored energy, energy storage could only provide certain
power output for a limited period of time.
4) Treat the energy storage as extra power source with the
assessed power from step 3.
5) Run power flow analysis to determine the optimal dispatch
with energy storage in order to avoid the loss of load event
1133
and prevent the system going to failure state. If there is still
not enough energy to cover the entire load, the system is in
failure state. However, even when the system is in failure
state, the energy storage still provides its stored energy to
minimize the amount of loss of load for the studied period.
6) Send the operation instructions to the energy storage and
execute the operations for this period.
7) Load aggregator updates the energy storage SOC.
8) Go to step 2 until the system is restored to normal state.
The real-time information communication helps coordinate
the energy storage operation between the local distribution
system load aggregator and the bulk power system operator.
This coordinated operation eventually benefits both the local
distribution system load aggregators through energy cost
saving and the system operator with higher bulk power system
reliability.
IV. RELIABILITY EVALUATION FRAMEWORK
In order to quantitatively evaluate and study the reliability im-
pact on the system brought by the energy storage integration, a
reliability evaluation framework is proposed. Within this frame-
work, the detailed energy storage operation strategies are simu-
lated to truly reflect its impact on the power system. The relia-
bility impact on the bulk power system caused by the local en-
ergy storage integration in the distribution system could be ac-
curately evaluated. This information is valuable for the system
operator when studying the energy storage integration impact,
planning for further energy storage integration or expansion,
evaluating the reliability and economic benefits and conducting
cost/worthy analysis.
The proposed reliability assessment framework is based on
Sequential Monte Carlo Simulation. In the reliability assess-
ment, a power system is considered to be operating in either
success state or failure state. A system is considered operating in
success state when it has enough generation capacity to serve the
load. When generation capacity is not sufficient to meet the load
demand and loss of load occurs, the system is in failure state.
The probabilities and durations associated with the system re-
siding in success and failure states and energy not served during
failure states are the reliability indices.
During operation, energy storage could serve as generation
providing power to the load and could be charged as a load. Cur-
rent period energy storage state of charge level is determined by
the previous operations. Because of these unique chronological
characteristics of energy storage, its impact on system reliability
is best captured using sequential Monte Carlo method, in which
its specific operation strategies are integrated. The assessment
flowchart is shown in Fig. 3. Details of the assessment frame-
work are presented as follows.
The bulk power system and the distribution system integrated
with energy storage and renewable energy generation are simu-
lated in parallel. The state of each bulk power system component
is simulated first. With the information of the system topology
and the simulated distribution system components state, the op-
eration mode of the distribution systems integrated with the en-
ergy storage and renewable energy generation is determined.
Then the energy storage operation strategies and the distribu-
tion and transmission coordination strategies are implemented
1134
Fig. 3. Proposed reliability assessment framework flowchart.
during the simulation process. According to the determined op-
eration strategy, the energy storage SOC and the imported power
from the external grid for this distribution system are obtained.
The SOC could be used by the system operator if there is a loss
of load event in the bulk power system. From the system op-
erator’s point of view, the imported power for this distribution
system is the load at this bus. With the load at each bus known
and the knowledge of the bulk power system components state
and topology, power flow analysis is performed to determine the
bulk power system state. The system is in success state if all the
loads are met; the system is in failure state if loss of load event
occurs. Within the analysis, both the generation and transmis-
sion lines availability are considered. Transmission line conges-
tions could also be included in the power flow analysis. If the
system is in failure state, energy storage coordination strategy
is applied to avoid or minimize the loss of load. During the sim-
ulation period, the system state and energy storage SOC are up-
dated and recorded for further simulation.
From the distribution system point of view, the system state
determination for reliability analysis is as follows:
• Under grid connected mode, the distribution systems with
energy storage devices are connected to the external grid.
The bulk power system power flow analysis is conducted
to determine whether the entire load is covered by the gen-
eration and energy storage. If the total power supply is not
sufficient for the entire load, or the transmission conges-
tions cause loss of load in any part of the system, the system
is identified as in failure state. Otherwise, it is in success
state.
IEEE TRANSACTIONS ON SMART GRID, VOL. 5, NO. 2, MARCH 2014
• Under islanding mode, the distribution systems are dis-
connected from the external grid. The load in the distri-
bution systems is supported through the integrated dis-
tributed generation and energy storage. In order for the
power system to be in success state, there must be suffi-
cient power supply integrated in the disconnected distribu-
tion systems to cover their load, and the power flow anal-
ysis must confirm that the load in the external grid is also
covered. In summary, both the disconnected distribution
systems and the external grid must be in success state to
make the bulk power system in success state. Otherwise,
the bulk power system is in failure state.
• Under Coordination Mode, the bulk power system requires
extra energy from the distribution systems integrated with
energy storage devices in order to avoid the loss of load
event. If there is sufficient energy from the energy storage
devices to cover the potential loss of load in the external
grid, the system is in success state. If there is not enough
energy from energy storage to support the bulk power
system due to the limited stored energy or transmission
congestions, the bulk power system is in failure state.
• Under failure mode, there is a failure inside the distribution
system. Power from either the external grid or the energy
storage cannot cover the distribution systems load due to
either the limited energy or the distribution systems net-
work disconnection. For example, in the radial distribution
systems without distributed generation and energy storage,
the failure or a power line can cause loss of load in the
downstream parts of the distribution system.
Once the bulk power system state is determined, it is recorded
for this period and later used to calculate LOLP and EENS.
With this reliability evaluation framework, the reliability im-
pact by the energy storage could be quantified. The reliability
impact brought by the energy storage could be attributed to two
main factors. The first one is that in the loss of load event, en-
ergy storage could provide extra energy to the system to avoid
the event or reduce the unserved energy. The other one is that
because of the correlation between the energy price and load
demand, the presented operation strategy controls the energy
storage in a fashion that energy storage is charged during non-
peak and low energy price periods while discharged during peak
and high energy price periods. This characteristic indicates that
the distribution system’s load is adjusted to a lower level during
peak period when loss of load events are more likely to occur.
Thus the total system’s peak load is mitigated. The probability of
inadequate generation during the peak load periods is reduced.
The bulk power system reliability is improved.
V. CASE STUDIES
A detailed case study on IEEE Reliability Test System (24
buses) [21] is performed to demonstrate the effectiveness of the
proposed power system reliability evaluation framework and
the benefits of the presented intelligent energy storage opera-
tion strategy. The sensitivity analysis provides more insights on
how the system reliability is affected through the integration of
energy storage considering the existence of integrated renew-
able energy resources.
XU AND SINGH: POWER SYSTEM RELIABILITY IMPACT OF ENERGY STORAGE INTEGRATION
TABLE I
BASE CASES RELIABILITY INDICES
In the case study, the most heavily loaded bus, bus 18, is in-
tegrated with energy storage and distributed wind turbine gen-
erations (WTG). The energy storage devices are operated with
the presented strategy and are assumed to be perfectly reliable.
Wind power output data from [2] is utilized. The failures of the
generation and transmission lines are modeled according to the
IEEE Reliability Test System Reliability Data. The transmis-
sion line capacities are considered. The case study horizon is
set as one year, and the one year horizon is simulated for 100
times. The average annual indices are calculated for evalua-
tion. The system operator utilizes the stored energy from energy
storage to avoid loss of load event or minimize unserved energy.
DC Optimal Power Flow is performed using MatPower [22]
to determine the bulk power system state and dispatch energy
storage discharge. The power system operational constraints,
such as generation ramp rate limit could be integrated into the
power flow analysis. The IEEE Reliability Test System load
profile is used. The original annual peak load of the system is
2850 MW. Considering the original system is relatively reliable
and the annually increasing load is making the system less re-
liable, the studied bulk power system’s load is scaled so that
the annual peak load is 2992.5 MW (1.05 2850 MW) and
3243 MW (1.15 2850 MW) respectively in the case studies.
The studied energy storage capacities range from 0 MWh to 80
MWh, and the energy storage power ratings range from 0 MW
to 80 MW. Base cases without energy storage or wind turbine
generation are first studied. Commonly used reliability indices,
Loss Of Load Probability (LOLP) and Expected Energy Not
Served (EENS) are used as the reliability indicators for the bulk
power system. The results of the base cases are shown in Table I.
Different sizes of energy storage and wind turbines capacities
are matched and integrated in the distribution system to form a
case. The reliability results for bulk power system with peak
load at 2992.5 MW (1.05 2850 MW) are shown in Table II
and Table III.
The case study results in Table I, Table II and Table III
demonstrate the reliability improvement benefits for the bulk
power system. The reliability improvement through the energy
storage integration and proposed operations is very effective.
For example, in Table I, for the system with peak load at
2992.5 MW (1.05 2850 MW), the integration of an en-
ergy storage device alone, which has a 20 MW power rating
(merely 0.67% of the 2992.5 MW peak load), and 40 MWh
capacity, could improve the bulk power system’s EENS for
1135
TABLE II
LOLP WITH 105% LOAD SCALE
TABLE III
EENS WITH 105% LOAD SCALE
8.0% . With the integration
of both energy storage and renewable energy generation, the
system reliability improvement is even more significant.
In Table II and Table III, it can be noticed that when the energy
storage has power rating from 20 MW to 60 MW, the expansion
of WTG from 2 MW to 50 MW does not improve LOLP. That
is because in those loss of load events, the added WTG is too
small to cover the generation inadequacy. However, the added
WTG reduces EENS from 2.609 GWh to 2.495 GWh. It is still
improving bulk system reliability and reducing customer inter-
ruption cost.
Table IV and Table V presents the results for the system with
annual peak load at 3243 MW (1.15 2850 MW). With a much
larger load demand, the system has the LOLP improved from
1.0073% to 0.7784%, and the EENS improved from 14.39 GWh
to 13.19 GWh. Compared with the results for the 105% load
scale system, the same expansion of energy storage and WTG
has a more effective impact on the reliability improvement for
this less reliable system.
As indicated in the results of case studies, the integration of
energy storage within the distribution system could contribute
to the bulk system reliability improvement, especially when the
system is heavily loaded and becomes less reliable. However,
as the energy storage is the resource owned and operated by the
local distribution system load aggregator, system operator who
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TABLE IV
LOLP WITH 115% LOAD SCALE
TABLE V
EENS WITH 115% LOAD SCALE
benefits from it should compensate the load aggregator for the
reliability improvement benefits it received. The quantified re-
liability improvement through the proposed evaluation frame-
work provides the basis for determining the proper compensa-
tion. If the reliability improvement value needs to be converted
to economic terms in order to determine its value, a cost/ben-
efit analysis based on the customer interruption cost method
could be utilized. Our previous work [23] proposed an economic
evaluation method for reliability improvement based on the cus-
tomer interruption cost method.
VI. CONCLUSION
The smart grid communication and control infrastructure
could be utilized to better manage energy storage within the
distribution system. This paper has presented an operation
strategy for a distribution load aggregator to utilize its energy
storage to better manage its energy procurement and distributed
renewable energy generation. The communication and control
structure for implementing this operation strategy is also pre-
sented. The communication network also allowed the energy
storage coordination during loss of load event in the bulk
power system. With the proposed energy storage coordination,
energy storage integrated in the distribution system could also
contribute to the bulk power system reliability improvement.
IEEE TRANSACTIONS ON SMART GRID, VOL. 5, NO. 2, MARCH 2014
A reliability evaluation framework is proposed to quantify the
energy storage reliability impact on the bulk power system.
Considering the potential large scale deployment of energy
storage devices and renewable energy generation, the quantified
study on the power system reliability impact is crucial for the
system operator to determine the value of the energy storage
integration. This work provides valuable insights on how the
energy storage could effectively and positively impact the bulk
system reliability. These insights could be beneficial for further
studies on the planning of energy storage and renewable energy
integration and expansion, cost/worthy analysis, energy storage
revenues streams evaluation, and economic feasibility analysis,
etc. They could also serve to help develop more appropriate
business models for energy storage deployment.
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Yixing Xu (S’08) received the Ph.D. degree from
Texas A&M University, College Station, TX, USA,
in 2012, and the B.E. degree from Tsinghua Univer-
sity, Beijing, China, in 2007.
His research interest includes power systems
reliability evaluation, power system optimization,
renewable energy integration, energy storage in-
tegration, smart grid and electricity market. His
industry experience includes an internship (June
2008–August 2008) at Entergy Corporation, and an
internship (June 2012–August 2012) at KEMA Inc.
1137
Chanan Singh (S’71–M’72–SM’79–F’91) is cur-
rently Regents Professor and Irma Runyon Chair
Professor in the Department of Electrical and Com-
puter Engineering, Texas A&M University (TAMU),
College Station, TX, USA.
He is also a Guest Professor at Tsinghua Univer-
sity. From 1995 to 1996, he served as the Director
of Power Program at the National Science Founda-
tion, and from 1997 to 2005, he served as the Head
of the Electrical and Computer Engineering Depart-
ment at TAMU. His research and consulting interests
are in the application of probabilistic methods to power systems. He has au-
thored/co-authored more than 300 technical papers and three books and has
contributed to several books. He has consulted with many major corporations
and given short courses nationally and internationally.
Dr. Singh was the recipient of the 1998 Outstanding Power Engineering
Educator Award given by the IEEE Power Engineering Society. For his
research contributions, he was awarded a D.Sc. degree by the University of
Saskatchewan, Saskatoon, SK, Canada, in 1997. In 2008, he was recognized
with the Merit Award by the PMAPS International Society. In 2010, he was the
inaugural recipient of the IEEE-PES Roy Billinton Power System reliability
Award.