A Novel Stackelberg-Game-Based Energy Storage Sharing Scheme Under Demand Charge

Bingyun Li; Qinmin Yang; Innocent Kamwa

doi:10.1109/JAS.2023.123216

Volume 10 Issue 2

Feb. 2023

IEEE/CAA Journal of Automatica Sinica

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Article Navigation > IEEE/CAA Journal of Automatica Sinica > 2023 > 10(2): 462-473

B. Y. Li, Q. M. Yang, and I. Kamwa, “A novel Stackelberg-game-based energy storage sharing scheme under demand charge,” IEEE/CAA J. Autom. Sinica, vol. 10, no. 2, pp. 462–473, Feb. 2023. doi: 10.1109/JAS.2023.123216

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B. Y. Li, Q. M. Yang, and I. Kamwa, “A novel Stackelberg-game-based energy storage sharing scheme under demand charge,” IEEE/CAA J. Autom. Sinica, vol. 10, no. 2, pp. 462–473, Feb. 2023. doi: 10.1109/JAS.2023.123216

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A Novel Stackelberg-Game-Based Energy Storage Sharing Scheme Under Demand Charge

doi: 10.1109/JAS.2023.123216

1.
College of Control Science and Engineering, Zhejiang University, Hangzhou 310027, China. Q. M. Yang is also with Huzhou Institute of Zhejiang University, China
2.
Department of Electrical and Computer Engineering, Laval University, Quebec City, QC, G1V 0A6, Canada

Funds: This work was supported by the National Natural Science Foundation of China (U21A20478), Zhejiang Provincial Nature Science Foundation of China (LZ21F030004), and Key-Area Research and Development Program of Guangdong Province (2018B010107002)

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Author Bio:
Bingyun Li (Graduate Student Member, IEEE) re-ceived the B.S. degree in automation from Zhejiang University in 2016, where he is currently pursuing the Ph.D. degree in control science and engineering.He is a Member of the Group of Networked Sensing and Control, State Key Laboratory of Industrial Control Technology, Zhejiang University. His research interests include nonlinear adaptive control, optimization, smart grid, wind power, and energy storage

Qinmin Yang (Senior Member, IEEE) received the B.S. degree in electrical engineering from the Civil Aviation University of China in 2001, the M.S. degree in control science and engineering from the Institute of Automation, Chinese Academy of Sciences, in 2004, and the Ph.D. degree in electrical engineering from the University of Missouric Rolla, USA, in 2007. From 2007 to 2008, he was a Postdoctoral Research Associate at University of Missouri Rolla. From 2008 to 2009, he was a System Engineer with Caterpillar Inc. From 2009 to 2010, he was a Postdoctoral Research Associate with the University of Connecticut, USA. Since 2010, he has been with the State Key Laboratory of Industrial Control Technology, College of Control Science and Engineering, Zhejiang University, where he is currently a Professor. He has also held visiting positions with the University of Toronto, Canada and Lehigh University, USA. His research interests include intelligent control, renewable energy systems, smart grid, and industrial big data. Prof. Yang has been serving as an Associate Editor for the IEEE Transactions on Systems, Man, and Cybernetics: Systems, IEEE Transactions on Neural Networks and Learning Systems, Transactions of the Institute of Measurement and Control, and IEEE/CAA Journal of Automatica Sinica

Innocent Kamwa (Fellow, IEEE) received the Ph.D. degree in electrical engineering from Laval University in 1989. He is a Full Professor in the Department of Electrical Engineering and Tier 1 Canada Research Chair in Decentralized Sustainable Electricity Grids for Smart Communities at Laval University. He was previously a Researcher at Hydro-Québec’s Research Institute, specializing in the dynamic performance and control of power systems. He was also the Chief Scientist for Hydro-Québec’s Smart Grid Innovation Program and an international consultant in power grid simulation and network stability. Dr. Kamwa is a past Editor-in-Chief of IET Generation, Transmission and Distribution, and is currently the Editor-in-Chief of IEEE Power and Energy Magazine and an Associate Editor of IEEE Transactions on Power Systems. A Fellow of the Canadian Academy of Engineering and Fellow of the IEEE for his innovations in power system control, he is also the 2019 recipient of the IEEE Charles Proteus Steinmetz and Charles Concordia Awards
Corresponding author: Qinmin Yang, e-mail: qmyang@zju.edu.cn
Received Date: 2022-01-26
Revised Date: 2022-04-05
Accepted Date: 2022-05-06

Available Online: 2022-12-05

Abstract

Abstract

Demand response (DR) using shared energy storage systems (ESSs) is an appealing method to save electricity bills for users under demand charge and time-of-use (TOU) price. A novel Stackelberg-game-based ESS sharing scheme is proposed and analyzed in this study. In this scheme, the interactions between selfish users and an operator are characterized as a Stackelberg game. Operator holds a large-scale ESS that is shared among users in the form of energy transactions. It sells energy to users and sets the selling price first. It maximizes its profit through optimal pricing and ESS dispatching. Users purchase some energy from operator for the reduction of their demand charges after operator’s selling price is announced. This game-theoretic ESS sharing scheme is characterized and analyzed by formulating and solving a bi-level optimization model. The upper-level optimization maximizes operator’s profit and the lower-level optimization minimizes users’ costs. The bi-level model is transformed and linearized into a mixed-integer linear programming (MILP) model using the mathematical programming with equilibrium constraints (MPEC) method and model linearizing techniques. Case studies with actual data are carried out to explore the economic performances of the proposed ESS sharing scheme.
- Bi-level optimization,
- demand charge,
- energy storage system (ESS) sharing,
- energy transaction,
- mathematical program with equilibrium constraints (MPEC),
- stackelberg game

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References

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A novel Stackelberg-game-based ESS sharing scheme is proposed
All the participants are assumed to be selfish and not collaborating, as in the practical scenarios
Demand charge and Time-of-Use (TOU) price are considered
Bi-level optimization and linearization methods are designed along with strict analysis

A Novel Stackelberg-Game-Based Energy Storage Sharing Scheme Under Demand Charge

doi: 10.1109/JAS.2023.123216

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