  Energy storage applications are explored from a prosumer (consumers with
generation) perspective for the island of Madeira in Portugal. These
applications could also be relevant to other power networks. We formulate a
convex co-optimization problem for performing arbitrage under zero feed-in
tariff, increasing self-sufficiency by increasing self-consumption of locally
generated renewable energy, provide peak shaving and act as a backup power
source during anticipated and scheduled power outages. Using real data from
Madeira we perform short and long time-scale simulations in order to select
end-user contract which maximizes their gains considering storage degradation
based on operational cycles. We observe energy storage ramping capability
decides peak shaving potential, fast ramping batteries can significantly reduce
peak demand charge. The numerical experiment indicates that storage providing
backup does not significantly reduce gains performing arbitrage and peak demand
shaving. Furthermore, we also use AutoRegressive Moving Average (ARMA)
forecasting along with Model Predictive Control (MPC) for real-time
implementation of the proposed optimization problem in the presence of
uncertainty.
