Energy storage system sitting and sizing in the presence of responsible demands in energy and reserve markets

Recently, the cooperation of energy storage systems and demand response programs in providing efficient energy management scheme have attracted enormous attention among researches. Considering the high capital cost of energy storage systems, the optimal economically sizing and sitting in distribution networks is an ineluctable task. In this paper, the optimal allocation of energy storage units in the presence of demand response programs has been studied. This paper is the updated version of our conference paper, in which the participation of responsive demands in both energy and reserve markets via direct and indirect participation is considered. Also, the block order participation modeling for demand response aggregator is formulated. The optimization problem is solved using GAMS optimization software. The results show that integration of demand response programs and energy storage systems in distribution networks can decrease system operation’s annual cost by about 10%.