# On Optimal Battery Sizing for Households Participating in Demand-Side Management Schemes

## TL;DR

This paper analyzes how to optimally size household batteries in demand-side management schemes, considering demand patterns, generation, and the impact of individual versus centralized storage, to improve grid stability and reduce costs.

## Contribution

It introduces a non-cooperative game model to determine optimal household battery capacities within community demand management schemes, comparing individual and centralized storage solutions.

## Key findings

- Optimal battery size depends on household demand and generation patterns.
- Community storage can outperform individual batteries in cost and efficiency.
- Demand-side management schemes reduce peak loads and improve self-consumption.

## Abstract

The smart grid with its two-way communication and bi-directional power layers is a cornerstone in the combat against global warming. It allows for the large scale adoption of distributed (individually-owned) renewable energy resources such as solar photovoltaic systems. Their intermittency poses a threat to the stability of the grid which can be addressed by the introduction of energy storage systems. Determining the optimal capacity of a battery has been an active area of research in recent years. In this research an in-depth analysis of the relation between optimal capacity, and demand and generation patterns is performed for households taking part in a community-wide demand-side management scheme. The scheme is based on a non-cooperative dynamic game approach in which participants compete for the lowest electricity bill by scheduling their energy storage systems. The results are evaluated based on self-consumption, the peak-to-average ratio of the aggregated load, and potential cost reductions. Furthermore, the difference between individually-owned batteries to a centralised community energy storage system serving the whole community is investigated.