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Service pricing and load dispatch of residential shared energy storage unit

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  • Zhang, Wenyi
  • Wei, Wei
  • Chen, Laijun
  • Zheng, Boshen
  • Mei, Shengwei

Abstract

Energy storage is playing an increasingly important role in power system operation as a flexible backup asset. At the demand side, it can postpone the upgrade of distribution system infrastructure, such as feeder and transformer, by shaving the peak demand. However, the investment cost of battery storage is still relatively high compared to their service period. In view of the temporal complementarity of energy consumption among different users, shared use of a single energy storage unit is a promising business model in the near future. This paper studies a representative scene of shared energy storage in a residential area and proposes a new method for service pricing and load dispatching in such a circumstance. The service price is determined by the marginal cost of the residential load aggregator, who controls the shared energy storage unit and energy supply for each consumer. Such a pricing scheme is fair to all users. Demand elasticity is also taken into account. Given the interaction between service price and elastic demand, the optimal dispatch is formulated as a fixed-point problem. The existence of an equilibrium solution is discussed, and a sufficient condition for the equilibrium being stable is disclosed. Numerical results based on real load and electricity prices data validate the proposed method.

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  • Zhang, Wenyi & Wei, Wei & Chen, Laijun & Zheng, Boshen & Mei, Shengwei, 2020. "Service pricing and load dispatch of residential shared energy storage unit," Energy, Elsevier, vol. 202(C).
    • Handle: RePEc:eee:energy:v:202:y:2020:i:c:s0360544220306502
    DOI: 10.1016/j.energy.2020.117543
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    8. Chen, Yujia & Pei, Wei & Ma, Tengfei & Xiao, Hao, 2023. "Asymmetric Nash bargaining model for peer-to-peer energy transactions combined with shared energy storage," Energy, Elsevier, vol. 278(PB).
    9. Aparna Kumari & Riya Kakkar & Rajesh Gupta & Smita Agrawal & Sudeep Tanwar & Fayez Alqahtani & Amr Tolba & Maria Simona Raboaca & Daniela Lucia Manea, 2023. "Blockchain-Driven Real-Time Incentive Approach for Energy Management System," Mathematics, MDPI, vol. 11(4), pages 1-17, February.
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    11. Zhang, Shixu & Li, Yaowang & Du, Ershun & Fan, Chuan & Wu, Zhenlong & Yao, Yong & Liu, Lurao & Zhang, Ning, 2023. "A review and outlook on cloud energy storage: An aggregated and shared utilizing method of energy storage system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 185(C).
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    13. Zhang, Wen-Yi & Chen, Yue & Wang, Yi & Xu, Yunjian, 2023. "Equilibrium analysis of a peer-to-peer energy trading market with shared energy storage in a power transmission grid," Energy, Elsevier, vol. 274(C).
    14. Gao, Jianwei & Wang, Yaping & Huang, Ningbo & Wei, Lingli & Zhang, Zixuan, 2022. "Optimal site selection study of wind-photovoltaic-shared energy storage power stations based on GIS and multi-criteria decision making: A two-stage framework," Renewable Energy, Elsevier, vol. 201(P1), pages 1139-1162.
    15. Kuznetsova, Elizaveta & Anjos, Miguel F., 2021. "Prosumers and energy pricing policies: When, where, and under which conditions will prosumers emerge? A case study for Ontario (Canada)," Energy Policy, Elsevier, vol. 149(C).
    16. Shi, Mengshu & Huang, Yuansheng & Lin, Hongyu, 2023. "Research on power to hydrogen optimization and profit distribution of microgrid cluster considering shared hydrogen storage," Energy, Elsevier, vol. 264(C).
    17. Zhaonian Ye & Yongzhen Wang & Kai Han & Changlu Zhao & Juntao Han & Yilin Zhu, 2023. "Bi-Objective Optimization and Emergy Analysis of Multi-Distributed Energy System Considering Shared Energy Storage," Sustainability, MDPI, vol. 15(2), pages 1-23, January.
    18. Ritu Kandari & Neeraj Neeraj & Alexander Micallef, 2022. "Review on Recent Strategies for Integrating Energy Storage Systems in Microgrids," Energies, MDPI, vol. 16(1), pages 1-24, December.
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