IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v406y2026ics0306261925020240.html

Energy storage capacity planning for cross-regional resource complementarity: a cooperative game framework

Author

Listed:
  • Lin, Zheng
  • Lou, Suhua
  • Liu, Chun

Abstract

The share of installed renewable capacity is expected to continue rising, driven by environmental and decarbonization goals. However, resource profiles and development conditions vary substantially across regions. This paper proposes a cooperative game framework for energy storage capacity planning to enhance cross-regional resource complementarity and utilization capabilities. First, the method combining K-Medoids and shapeDTW is employed to cluster planning scenarios based on the characteristics of renewable energy and load. Then, under the cooperative game framework, energy storage capacity planning and optimize operation method in cross-regional power system is developed to reduce energy storage planning and system operating costs across regions while preserving the privacy of each region. Finally, the cross-regional resource compensation strategy based on Nash bargaining is established to achieve a win-win outcome within the cooperative game framework. A decentralized distributed solution method using the enhanced Alternating Direction Method of Multipliers (ADMM) is adopted to solve the cross-regional energy storage capacity planning and resource compensation strategies. The case study utilizes the modified HRP 38-bus power system. Numerical results demonstrate that the proposed cooperative game framework improves the utilization of cross-regional renewable energy and reduces the planning and operating costs of energy storage in the cross-regional power system. Furthermore, the results confirm the cost advantages achieved by each region under the cooperative game framework.

Suggested Citation

  • Lin, Zheng & Lou, Suhua & Liu, Chun, 2026. "Energy storage capacity planning for cross-regional resource complementarity: a cooperative game framework," Applied Energy, Elsevier, vol. 406(C).
  • Handle: RePEc:eee:appene:v:406:y:2026:i:c:s0306261925020240
    DOI: 10.1016/j.apenergy.2025.127294
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261925020240
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.apenergy.2025.127294?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. B. S. He & H. Yang & S. L. Wang, 2000. "Alternating Direction Method with Self-Adaptive Penalty Parameters for Monotone Variational Inequalities," Journal of Optimization Theory and Applications, Springer, vol. 106(2), pages 337-356, August.
    2. Wu, Yunna & Zhang, Ting & Gao, Rui & Wu, Chenghao, 2021. "Portfolio planning of renewable energy with energy storage technologies for different applications from electricity grid," Applied Energy, Elsevier, vol. 287(C).
    3. Christian Kaps & Simone Marinesi & Serguei Netessine, 2023. "When Should the Off-Grid Sun Shine at Night? Optimum Renewable Generation and Energy Storage Investments," Management Science, INFORMS, vol. 69(12), pages 7633-7650, December.
    4. Churkin, Andrey & Bialek, Janusz & Pozo, David & Sauma, Enzo & Korgin, Nikolay, 2021. "Review of Cooperative Game Theory applications in power system expansion planning," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    5. Chen, Weidong & Wang, Junnan & Yu, Guanyi & Chen, Jiajia & Hu, Yumeng, 2022. "Research on day-ahead transactions between multi-microgrid based on cooperative game model," Applied Energy, Elsevier, vol. 316(C).
    6. Qiu, Yibin & Li, Qi & Wang, Tianhong & Yin, Liangzhen & Chen, Weirong & Liu, Hong, 2022. "Optimal planning of Cross-regional hydrogen energy storage systems considering the uncertainty," Applied Energy, Elsevier, vol. 326(C).
    7. Li, Yang & Feng, Bo & Wang, Bin & Sun, Shuchao, 2022. "Joint planning of distributed generations and energy storage in active distribution networks: A Bi-Level programming approach," Energy, Elsevier, vol. 245(C).
    8. Zhang, Zhenwei & Wang, Chengfu & Wu, Qiuwei & Dong, Xiaoming, 2024. "Optimal dispatch for cross-regional integrated energy system with renewable energy uncertainties: A unified spatial-temporal cooperative framework," Energy, Elsevier, vol. 292(C).
    9. Zheng, Weiye & Lu, Hao & Zhu, Jizhong, 2023. "Incentivizing cooperative electricity-heat operation: A distributed asymmetric Nash bargaining mechanism," Energy, Elsevier, vol. 280(C).
    10. Pu, Yuchen & Li, Qi & Huo, Shasha & Breaz, Elena & Chen, Weirong & Gao, Fei, 2024. "Optimal configuration for shared electric-hydrogen energy storage for multiple integrated energy systems with mobile hydrogen transportation," Renewable Energy, Elsevier, vol. 237(PC).
    11. Jia, Zhijie & Wen, Shiyan & Wang, Yao, 2023. "Power coming from the sky: Economic benefits of inter-regional power transmission in China," Energy Economics, Elsevier, vol. 119(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Zhi & Chen, Yanbo & Ma, Tianyang & Tian, Haoxin & Liu, Jingyu & Zhou, Ming & Wang, Wei, 2025. "Multi-type energy storage expansion planning: A review for high-penetration renewable energy integration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 219(C).
    2. Jiankai Gao & Yang Li & Bin Wang & Haibo Wu, 2023. "Multi-Microgrid Collaborative Optimization Scheduling Using an Improved Multi-Agent Soft Actor-Critic Algorithm," Energies, MDPI, vol. 16(7), pages 1-21, April.
    3. Zhang, Mingming & Nie, Jinchen & Su, Bin & Liu, Liyun, 2024. "An option game model applicable to multi-agent cooperation investment in energy storage projects," Energy Economics, Elsevier, vol. 131(C).
    4. Guo, Hui & Xiao, Yunpeng & Pinson, Pierre & Wang, Xiuli & Zhang, Likai & Wang, Xifan, 2025. "A negotiation-based incentive mechanism for efficient Transmission Expansion Planning considering generation investment equilibrium in deregulated environment," Applied Energy, Elsevier, vol. 386(C).
    5. Wang, Zhuo & Hou, Hui & Zhao, Bo & Zhang, Leiqi & Shi, Ying & Xie, Changjun, 2024. "Risk-averse stochastic capacity planning and P2P trading collaborative optimization for multi-energy microgrids considering carbon emission limitations: An asymmetric Nash bargaining approach," Applied Energy, Elsevier, vol. 357(C).
    6. Wang, Jiangjiang & Deng, Hongda & Qi, Xiaoling, 2022. "Cost-based site and capacity optimization of multi-energy storage system in the regional integrated energy networks," Energy, Elsevier, vol. 261(PA).
    7. Moradi-Sepahvand, Mojtaba & Amraee, Turaj, 2021. "Integrated expansion planning of electric energy generation, transmission, and storage for handling high shares of wind and solar power generation," Applied Energy, Elsevier, vol. 298(C).
    8. Pan, Yue & Chai, Jian & Tian, Lingyue & Zhang, Xiaokong & Wang, Jiaoyan, 2024. "Regional inequality in China's electricity trade," Energy, Elsevier, vol. 313(C).
    9. Jin Gao & Zhenguo Shao & Feixiong Chen & Mohammadreza Lak, 2025. "Energy Trading Strategies for Integrated Energy Systems Considering Uncertainty," Energies, MDPI, vol. 18(4), pages 1-21, February.
    10. Chen, Lei & Jiang, Yuqi & Zheng, Shencong & Deng, Xinyi & Chen, Hongkun & Islam, Md. Rabiul, 2023. "A two-layer optimal configuration approach of energy storage systems for resilience enhancement of active distribution networks," Applied Energy, Elsevier, vol. 350(C).
    11. Sun, Yaling & Che, Yanbo & Guo, Xiao & Zhang, Shangyuan, 2025. "Optimal modelling and analysis of DG-GC joint multilateral transaction in energy blockchain environment: from the REP perspective," Energy, Elsevier, vol. 335(C).
    12. Zhu, Haohao & Wang, Xiluo & Wen, Yutong & Zhu, Jizhong & Li, Jiayi & Luo, Qingju & Liao, Chenlei, 2025. "A review of integrated energy system modeling and operation," Applied Energy, Elsevier, vol. 400(C).
    13. Zhiming Lu & Youting Li & Guying Zhuo & Chuanbo Xu, 2023. "Configuration Optimization of Hydrogen-Based Multi-Microgrid Systems under Electricity Market Trading and Different Hydrogen Production Strategies," Sustainability, MDPI, vol. 15(8), pages 1-23, April.
    14. Kun Jin & Yevgeniy Vorobeychik & Mingyan Liu, 2021. "Multi-Scale Games: Representing and Solving Games on Networks with Group Structure," Papers 2101.08314, arXiv.org.
    15. Yan Lu & Xuan Liu & Yan Zhang & Zhiqiao Yang & Yunna Wu, 2023. "Investment Efficiency Assessment Model for Pumped Storage Power Plants Considering Grid Operation Demand under Fuzzy Environment: A Case Study in China," Sustainability, MDPI, vol. 15(11), pages 1-23, May.
    16. Jani, Ali & Jadid, Shahram, 2023. "Two-stage energy scheduling framework for multi-microgrid system in market environment," Applied Energy, Elsevier, vol. 336(C).
    17. Duan, Fude & Bu, Xiongzhu, 2025. "A new cloud-stochastic framework for optimized deployment of hydrogen storage in distribution network integrated with renewable energy considering hydrogen-based demand response," Energy, Elsevier, vol. 316(C).
    18. Tang, Bao-Jun & Cao, Xi-Lin & Li, Ru & Xiang, Zhi-Bo & Zhang, Sen, 2024. "Economic and low-carbon planning for interconnected integrated energy systems considering emerging technologies and future development trends," Energy, Elsevier, vol. 302(C).
    19. Wu, Biao & Zhang, Shaohua & Yuan, Chenxin & Wang, Xian & Wang, Fei & Zhang, Shengqi, 2024. "Cooperative energy and reserve trading strategies for multiple integrated energy systems based on asymmetric nash bargaining theory," Energy, Elsevier, vol. 313(C).
    20. Wu, Zhaoyuan & Chen, Zili & Wang, Congyi & Zhou, Ming & Wang, Jianxiao & Chen, Lin, 2024. "Unlocking the potential of rooftop solar panels: An incentive rate structure design," Energy Policy, Elsevier, vol. 190(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:406:y:2026:i:c:s0306261925020240. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.