To promote the large scale commercial application of battery energy storage system

the energy storage is considered from both planning and operation under two part tariff scenario. An optimized configuration and assessment strategy with whole life cycle considering demand management is proposed. Firstly

the annual revenue model of energy storage participating in demand management arbitrage is constructed

including energy price and basic electricity demand charge. Meanwhile

the power randomness of energy storage is restrained. Secondly

the whole life cycle cost of energy storage is evaluated

and the impact of battery capacity degradation is considered to quantify its loss cost function.Then

integrated with the historical load

time of use electricity price

state of charge

charge discharge power and other constraints of the energy storage system

the minimum objective function is utilized to optimize the output power of energy storage. Finally

the economic feasibility of the model is verified through practical examples

which provides basis for the investment decision and operation guidance of user side energy storage.