This article presents a novel analytical method for studying the capability of an energy storage system (ESS) installed in a power system to damp power system oscillations. The proposed method is based on the well-known equal-area criterion and linearized small-signal stability analysis. In the article, the proposed method is presented generally for the analysis of damping a power oscillation along a transmission line in the power system. The method is then used to study damping power system oscillations in a single-machine infinite-bus power system installed with a shunt-connected ESS. Many useful analytical conclusions are obtained, which clearly and simply explains why and how the ESS can effectively suppress power system oscillations. Computational results and nonlinear simulation of an example power system installed with a battery energy storage system (BESS) are given in the article to demonstrate and confirm the analytical conclusions obtained. Application of the proposed method in a more complicated case of multi-machine power systems and an issue of limitation of capacity of ESS in the applications are discussed briefly at the end of the article. [PUBLICATION ABSTRACT]
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