Rule-based peak shaving strategy with battery storage: Evaluating socio-economic impacts in regional grids

The Australian electricity framework includes several demand tariff structures, with peak demand charges constituting a significant cost component for consumers. Efficient peak load shaving techniques can mitigate these charges, leading to substantial economic benefits to the power suppliers, consumers, and society. Conducting a socio-economic benefit analysis is essential to assess the feasibility and impact of such advanced strategies, enabling informed decision-making, supporting investments in sustainable technologies, and advancing energy security and environmental preservation. This study investigates the socio-economic benefits of implementing a rule-based peak shaving approach demonstrated on a 100 kW (400 kWh) battery energy storage system (BESS) integrated into a regional distribution network (RDN) located in New South Wales, Australia. This investigation utilizes a general analytical framework that incorporates real-world demand patterns, tariff structures, and system cost parameters specific to the Australian energy market. MATLAB/Simulink is employed to simulate the BESS peak shaving operation under the rule-based approach. A comparative case study is performed for two scenarios: with and without BESS-based peak shaving within the RDN. This general analytical framework, along with the simulation case study, enables a comprehensive evaluation of both technical performance and economic impacts, including reductions in peak demand charges, operational expenses, and deferred infrastructure upgrade costs. Furthermore, it demonstrates significant reductions in reliance on grid-supplied energy, energy losses, and greenhouse gas emissions, compared to other state-of-the-art methods. The analysis reveals that integrating a rule-based peak shaving technique with BESS provides significant benefits to the system, end-users, and society. The payback period is 3.68 years, emphasizing the economic viability and socio-environmental advantages of integrating BESS with a rule-based peak shaving strategy. These findings provide a robust extendable framework for sustainable and cost-effective energy management in Australian as well as global distribution networks.