Building control systems with optimization of equipment life cycle economic value while participating in ibdr and pbdr programs

A method for allocating one or more resources including electrical energy across equipment that operate to satisfy a resource demand of a building, the method comprising:

• storing electrical energy purchased from a utility in an electrical energy storage and discharging the stored electrical energy;
• determining, for a plurality of time steps within a time horizon, an allocation of the one or more resources including an amount of the electrical energy to store in the electrical energy storage or discharge from the electrical energy storage by performing an optimization of a value function, wherein the value function comprises a monetized cost of capacity loss for the electrical energy storage predicted to result from battery degradation due to a potential allocation of the one or more resources;
• predicting the monetized cost of capacity loss prior to allocating the one or more resources and using the predicted cost of capacity loss to determine the allocation of the one or more resources;
• and
• using the allocation of the one or more resources to operate the electrical energy storage.

A building management system comprising:

• building equipment configured to consume electrical energy;
• electrical energy storage comprising one or more batteries configured to store electrical energy purchased from a utility and to discharge the stored electrical energy;
• a controller configured to determine, for a plurality of time steps within a time horizon, an allocation of the one or more resources including an amount of the electrical energy to store in the electrical energy storage or discharge from the electrical energy storage by performing an optimization of a value function, the value function comprising a monetized cost of capacity loss for the electrical energy storage predicted to result from battery degradation due to a potential allocation of the one or more resources;
• wherein the controller is configured to predict the monetized cost of capacity loss prior to allocating the one or more resources, use the predicted cost of capacity loss to determine the allocation of the one or more resources, and use the allocation of the one or more resources to operate the electrical energy storage.