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

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  • 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
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    References listed on IDEAS

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