Discrete versus continuous: Enhancing battery optimization in capacity expansion models

Abstract

This study compares two battery modeling approaches for capacity expansion models: discrete-duration and continuous-duration formulations. In the discrete approach, battery duration is fixed, and power capacity is optimized. In the continuous approach, both power and energy capacities are decision variables, allowing storage duration to be optimized endogenously. Although both discrete-duration and continuous-duration battery formulations are used in long-term power system planning models, the literature has provided limited direct, systematic comparisons of their implications within a common modeling framework. To address this gap, this study implements both approaches in the Regional Energy Deployment System (ReEDS TM ) capacity expansion model using two resource adequacy methods, across a range of future system conditions, and with varying battery cost projections. Results show continuous-duration and high-resolution discrete approaches produce similar capacity expansion outcomes. The continuous formulation achieves faster runtimes compared to discrete-duration runs with many discrete-duration options. However, the discrete-duration approach allows users to choose to have limited fidelity for storage duration options, which in some cases can outperform the continuous formulation. The continuous formulation has the lowest overall system costs, indicating its ability to fine-tune storage duration to better meet specific system needs. This study's findings provide a side-by-side evaluation of discrete and continuous battery modeling approaches and offer guidance for improving the representation of real-world systems, flexibility, and computational efficiency for representing energy storage in long-term power system planning models.