IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v235y2021ics0360544221015863.html
   My bibliography  Save this article

A bilevel bidding and clearing model incorporated with a pricing strategy for the trading of energy storage use rights

Author

Listed:
  • Zhu, Jianquan
  • Xia, Yunrui
  • Mo, Xiemin
  • Guo, Ye
  • Chen, Jiajun

Abstract

Energy storage use right (ESUR) is a novel concept to make more people share the energy storage (ES) and give full play to its values. However, the integrated bidding, clearing and pricing method of ESURs is never reported nowadays. In this paper, we design some new ESURs, including the discrete power capacity right (DPCR) and the continuous energy capacity right (CECR), to meet the different needs of subscribers for sharing the ES. The ESUR trade is formulated as a bilevel problem, in which the upper-level problem represents the bidding strategies of subscribers, and the lower-level problem represents the market clearing. A pricing strategy is proposed to make the trading effective and fair by ensuring the optimalities of problems in both two levels. Using the Karush–Kuhn–Tucker (KKT) conditions and the binary expansion technique, the bilevel model is transferred into a linear problem to facilitate solving the model. In addition, it can be theoretically proved that the profit of each participant is non-negative. Numerical experiments are provided to demonstrate the effectiveness of the proposed method. Compared with the trading of DPCR, the participants’ overall profit is increased by 23.6%–145.91% owing to the additional consideration of the trading of CECR.

Suggested Citation

  • Zhu, Jianquan & Xia, Yunrui & Mo, Xiemin & Guo, Ye & Chen, Jiajun, 2021. "A bilevel bidding and clearing model incorporated with a pricing strategy for the trading of energy storage use rights," Energy, Elsevier, vol. 235(C).
    • Handle: RePEc:eee:energy:v:235:y:2021:i:c:s0360544221015863
    DOI: 10.1016/j.energy.2021.121338
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544221015863
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2021.121338?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Hafiz, Faeza & Rodrigo de Queiroz, Anderson & Fajri, Poria & Husain, Iqbal, 2019. "Energy management and optimal storage sizing for a shared community: A multi-stage stochastic programming approach," Applied Energy, Elsevier, vol. 236(C), pages 42-54.
    2. Rodrigues, Daniel L. & Ye, Xianming & Xia, Xiaohua & Zhu, Bing, 2020. "Battery energy storage sizing optimisation for different ownership structures in a peer-to-peer energy sharing community," Applied Energy, Elsevier, vol. 262(C).
    3. He, Xian & Delarue, Erik & D'haeseleer, William & Glachant, Jean-Michel, 2011. "A novel business model for aggregating the values of electricity storage," Energy Policy, Elsevier, vol. 39(3), pages 1575-1585, March.
    4. Wang, Zhimin & Gu, Chenghong & Li, Furong, 2018. "Flexible operation of shared energy storage at households to facilitate PV penetration," Renewable Energy, Elsevier, vol. 116(PA), pages 438-446.
    5. Barbour, Edward & Parra, David & Awwad, Zeyad & González, Marta C., 2018. "Community energy storage: A smart choice for the smart grid?," Applied Energy, Elsevier, vol. 212(C), pages 489-497.
    6. Roberts, Mike B. & Bruce, Anna & MacGill, Iain, 2019. "Impact of shared battery energy storage systems on photovoltaic self-consumption and electricity bills in apartment buildings," Applied Energy, Elsevier, vol. 245(C), pages 78-95.
    7. Carli, Raffaele & Dotoli, Mariagrazia & Jantzen, Jan & Kristensen, Michael & Ben Othman, Sarah, 2020. "Energy scheduling of a smart microgrid with shared photovoltaic panels and storage: The case of the Ballen marina in Samsø," Energy, Elsevier, vol. 198(C).
    8. Khaloie, Hooman & Abdollahi, Amir & Shafie-khah, Miadreza & Anvari-Moghaddam, Amjad & Nojavan, Sayyad & Siano, Pierluigi & Catalão, João P.S., 2020. "Coordinated wind-thermal-energy storage offering strategy in energy and spinning reserve markets using a multi-stage model," Applied Energy, Elsevier, vol. 259(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pan, Yuling & Dong, Feng, 2023. "The impacts of energy finance policies and renewable energy subsidy on energy vulnerability under carbon peaking scenarios," Energy, Elsevier, vol. 273(C).
    2. Huang, Qian & Xu, Jiuping, 2023. "Carbon tax revenue recycling for biomass/coal co-firing using Stackelberg game: A case study of Jiangsu province, China," Energy, Elsevier, vol. 272(C).

    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. Walker, Awnalisa & Kwon, Soongeol, 2021. "Design of structured control policy for shared energy storage in residential community: A stochastic optimization approach," Applied Energy, Elsevier, vol. 298(C).
    2. Sturmberg, B.C.P. & Shaw, M.E. & Mediwaththe, C.P. & Ransan-Cooper, H. & Weise, B. & Thomas, M. & Blackhall, L., 2021. "A mutually beneficial approach to electricity network pricing in the presence of large amounts of solar power and community-scale energy storage," Energy Policy, Elsevier, vol. 159(C).
    3. Tushar, Wayes & Yuen, Chau & Saha, Tapan K. & Morstyn, Thomas & Chapman, Archie C. & Alam, M. Jan E. & Hanif, Sarmad & Poor, H. Vincent, 2021. "Peer-to-peer energy systems for connected communities: A review of recent advances and emerging challenges," Applied Energy, Elsevier, vol. 282(PA).
    4. Kang, Hyuna & Jung, Seunghoon & Lee, Minhyun & Hong, Taehoon, 2022. "How to better share energy towards a carbon-neutral city? A review on application strategies of battery energy storage system in city," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).
    5. Àlex Alonso & Jordi de la Hoz & Helena Martín & Sergio Coronas & José Matas, 2021. "Individual vs. Community: Economic Assessment of Energy Management Systems under Different Regulatory Frameworks," Energies, MDPI, vol. 14(3), pages 1-27, January.
    6. Chang, Hsiu-Chuan & Ghaddar, Bissan & Nathwani, Jatin, 2022. "Shared community energy storage allocation and optimization," Applied Energy, Elsevier, vol. 318(C).
    7. Andreolli, Francesca & D'Alpaos, Chiara & Kort, Peter, 2023. "Does P2P Trading Favor Investments in PV-Battery Systems?," FEEM Working Papers 330498, Fondazione Eni Enrico Mattei (FEEM).
    8. Chen, Xi & Liu, Zhongbing & Wang, Pengcheng & Li, Benjia & Liu, Ruimiao & Zhang, Ling & Zhao, Chengliang & Luo, Songqin, 2023. "Multi-objective optimization of battery capacity of grid-connected PV-BESS system in hybrid building energy sharing community considering time-of-use tariff," Applied Energy, Elsevier, vol. 350(C).
    9. Zhang, Yijie & Ma, Tao & Yang, Hongxing, 2022. "Grid-connected photovoltaic battery systems: A comprehensive review and perspectives," Applied Energy, Elsevier, vol. 328(C).
    10. Gjorgievski, Vladimir Z. & Cundeva, Snezana & Georghiou, George E., 2021. "Social arrangements, technical designs and impacts of energy communities: A review," Renewable Energy, Elsevier, vol. 169(C), pages 1138-1156.
    11. Francesca Andreolli & Chiara D'Alpaos & Peter Kort, 2023. "Does P2P Trading Favor Investments in PV-Battery Systems?," Working Papers 2023.02, Fondazione Eni Enrico Mattei.
    12. Zheng, Siqian & Jin, Xin & Huang, Gongsheng & Lai, Alvin CK., 2022. "Coordination of commercial prosumers with distributed demand-side flexibility in energy sharing and management system," Energy, Elsevier, vol. 248(C).
    13. Moiz Masood Syed & Gregory M. Morrison & James Darbyshire, 2020. "Shared Solar and Battery Storage Configuration Effectiveness for Reducing the Grid Reliance of Apartment Complexes," Energies, MDPI, vol. 13(18), pages 1-23, September.
    14. Scheller, Fabian & Burkhardt, Robert & Schwarzeit, Robert & McKenna, Russell & Bruckner, Thomas, 2020. "Competition between simultaneous demand-side flexibility options: the case of community electricity storage systems," Applied Energy, Elsevier, vol. 269(C).
    15. Zakeri, Behnam & Gissey, Giorgio Castagneto & Dodds, Paul E. & Subkhankulova, Dina, 2021. "Centralized vs. distributed energy storage – Benefits for residential users," Energy, Elsevier, vol. 236(C).
    16. Zheng, Siqian & Huang, Gongsheng & Lai, Alvin CK., 2021. "Techno-economic performance analysis of synergistic energy sharing strategies for grid-connected prosumers with distributed battery storages," Renewable Energy, Elsevier, vol. 178(C), pages 1261-1278.
    17. Alberto Fichera & Alessandro Pluchino & Rosaria Volpe, 2020. "Modelling Energy Distribution in Residential Areas: A Case Study Including Energy Storage Systems in Catania, Southern Italy," Energies, MDPI, vol. 13(14), pages 1-21, July.
    18. Song, Xiaoling & Zhang, Huqing & Fan, Lurong & Zhang, Zhe & Peña-Mora, Feniosky, 2023. "Planning shared energy storage systems for the spatio-temporal coordination of multi-site renewable energy sources on the power generation side," Energy, Elsevier, vol. 282(C).
    19. Ma, Mingtao & Huang, Huijun & Song, Xiaoling & Peña-Mora, Feniosky & Zhang, Zhe & Chen, Jie, 2022. "Optimal sizing and operations of shared energy storage systems in distribution networks: A bi-level programming approach," Applied Energy, Elsevier, vol. 307(C).
    20. Fabian Scheller & Robert Burkhardt & Robert Schwarzeit & Russell McKenna & Thomas Bruckner, 2020. "Competition between simultaneous demand-side flexibility options: The case of community electricity storage systems," Papers 2011.05809, arXiv.org.

    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:energy:v:235:y:2021:i:c:s0360544221015863. 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.journals.elsevier.com/energy .

    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.