Service pricing and load dispatch of residential shared energy storage unit

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

Energy, 2020, vol. 202, issue C

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.

Keywords: Business model; Fixed-point equilibrium; Residential consumer; Shared energy storage (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:202:y:2020:i:c:s0360544220306502

DOI: 10.1016/j.energy.2020.117543

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