Optimal Community Energy Storage System Operation in a Multi-Power Consumer System: A Stackelberg Game Theory Approach

Gyeong Ho Lee, Junghyun Lee (), Seong Gon Choi () and Jangkyum Kim
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Gyeong Ho Lee: Information & Electronic Research Institute, Korea Advanced Institute of Science and Technology (KAIST), Daejeon 34051, Republic of Korea
Junghyun Lee: School of Electrical Engineering, Korea Advanced Institute of Science and Technology (KAIST), Daejeon 34051, Republic of Korea
Seong Gon Choi: School of Information and Communication Engineering, Chungbuk University, Cheongju-si 28644, Republic of Korea
Jangkyum Kim: Department of Artificial Intelligence and Data Science, Sejong University, Seoul 05006, Republic of Korea

Energies, 2024, vol. 17, issue 22, 1-16

Abstract: The proliferation of community energy storage systems (CESSs) necessitates effective energy management to address financial concerns. This paper presents an efficient energy management scheme for heterogeneous power consumers by analyzing various cost factors relevant to the power system. We propose an authority transaction model based on a multi-leader multi-follower Stackelberg game, demonstrating the existence of a unique Stackelberg equilibrium to determine optimal bidding prices and allocate authority transactions. Our model shows that implementing a CESS can reduce total electricity costs by 16% compared to the conventional case that does not account for authority transactions among CESS users, highlighting its effectiveness in practical power systems.

Keywords: community energy storage system; Stackelberg game model; optimization; energy management system (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2024
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