Optimal battery capacity in electrical load scheduling

With a rapid decline in cost of battery energy storage, system plays an increasingly important role managing imbalance between ordering and consumption the electricity wholesale market. We develop innovative demand forecasting framework for calculating optimal capacity that maximizes profit retailer. The allows different costs associated with over- under-prediction errors, two insensitive parameters to capture residual remaining storage space. An application Australia National Electricity Market New South Wales shows use can save up AUD $65 millions annually under reasonable unit assumptions.