Power System Dispatch With Marginal Degradation Cost of Battery Storage

Battery storage is essential for the future smart grid. The inevitable cell degradation renders battery lifetime volatile and highly dependent on dispatch, thus incurs opportunity cost. This paper rigorously derives marginal cost of power system dispatch. derived optimal time-variant to reflect time value money functionality fade takes form a constant divided by discount factor plus term related state health. In case studies, we demonstrate evolution costs that corresponds long-term dispatch outcome. We also show depends generation in