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Optimal planning and investment benefit analysis of shared energy storage for electricity retailers

Lookup NU author(s): Da HuoORCiD



This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND).


With the rapid development of energy storage (ES) technology, it has gradually become a vital facility to cope with the intermittent renewable generation and reduce the users’ electricity purchase cost. However, the limited application of the ES has suffered from its high capital cost. This paper proposes an approach of optimal planning the shared energy storage based on cost-benefit analysis to minimize the electricity procurement cost of electricity retailers. First, the multi-time scale electricity purchase model is established. Then the retailers are screened and classified based on the proposed matching degree function to select the collective of retailers, which maximizes the profits of planning the shared ES. The life cycle cost model and the equivalent cycle life method are used to evaluate the benefit of investing the shared ES. The benefit distribution among the collective is conducted based on the contribution degree of each retailer. In the case study, the optimization results of the shared ES for high-matching and low-matching groups are compared in detail. The simulation results illustrate that the costs are reduced by 8.83% and 8.03% respectively for the two groups of electricity retailers by the proposed approach. Results also verify that ES can effectively reduce the cost of retailers, and high matching degree can be used as the selection criterion to obtain a greater benefit of the shared ES.

Publication metadata

Author(s): Liu J, Chen X, Xiang Y, Huo D, Liu J

Publication type: Article

Publication status: Published

Journal: International Journal of Electrical Power & Energy Systems

Year: 2020

Volume: 126

Issue: Part A

Online publication date: 21/10/2020

Acceptance date: 28/09/2020

Date deposited: 21/10/2020

ISSN (print): 0142-0615

ISSN (electronic): 1879-3517

Publisher: Elsevier


DOI: 10.1016/j.ijepes.2020.106561


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