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Stackelberg game for shared energy storage and wind farm bilateral trading with multi-market participation

Author

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  • Zhu, Xingxu
  • Zhao, Guiqing
  • Li, Junhui
  • Liu, Haojun
  • Zhao, Zhiqiang
  • Li, Cuiping
  • Li, Zhi
  • Zhou, Hongwei

Abstract

To address the high investment costs, low utilization, and long payback periods of single-service energy storage, this study proposes a shared energy storage strategy integrating wind-storage bilateral transactions and ancillary peak-shaving services. By leveraging multi-service synergy, the strategy improves energy storage utilization and economic benefits while optimizing WF's bidding strategies in the day-ahead market. A revenue maximization model is developed based on the Weibull distribution of wind power, incorporating capacity degradation costs. A Stackelberg game framework is formulated to determine optimal participation strategies for shared energy storage operators (SESO) and WFs, solved using a hybrid approach that combines an improved genetic algorithm and an interior-point method. Case studies demonstrate that, compared to single leasing, the proposed model increases SESO and WF benefits by 2.35 %, 5.69 %, and 6.81 %, respectively, while SESO revenue rises by 255.46 % compared to ancillary services alone. Additionally, the model reduces WF leasing costs, mitigates wind curtailment and grid deviation penalties, and enhances overall economic efficiency. This study provides a structured framework for wind-storage collaboration, offering theoretical insights into optimizing energy storage participation in electricity markets and supporting the advancement of smart grids and renewable energy integration.

Suggested Citation

  • Zhu, Xingxu & Zhao, Guiqing & Li, Junhui & Liu, Haojun & Zhao, Zhiqiang & Li, Cuiping & Li, Zhi & Zhou, Hongwei, 2025. "Stackelberg game for shared energy storage and wind farm bilateral trading with multi-market participation," Energy, Elsevier, vol. 326(C).
    • Handle: RePEc:eee:energy:v:326:y:2025:i:c:s0360544225018808
    DOI: 10.1016/j.energy.2025.136238
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    1. Shen, Zhifeng & Ye, Yongming & Ahmed, Khan Faiz & Ali, Aftab & Asim, Minhas & Wang, Guanghui, 2026. "Cooperative mechanisms for shared power equipment warehousing among new energy power generation enterprises in China’s new power system: A study based on a quantum game theory approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 206(C).
    2. Duan, Fuyan & Luo, Yi & Huang, Zebo, 2026. "Coordinated operation framework for multi-integrated energy systems with electricity-carbon interaction based on Nash-Stackelberg-Nash game and distributionally robust chance-constraints," Renewable Energy, Elsevier, vol. 256(PF).

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