Decentralized Energy Trading Framework with Personalized Pricing for Energy Community embedded with Shared Energy Storage

Abstract

Decentralized energy trading techniques are promising to become the next-generation scheme for energy management with the transformation of energy systems. Influenced by the sharing economy principle, the deployment of shared energy storage (SES) can mitigate the investment of storage devices and facilitate the construction of decentralized energy trading. Under such circumstances, this paper proposes a comprehensive energy trading framework for the energy community constituted of SES, prosumers, and retail energy providers. A Stackelberg game method is utilized to depict the interactions between prosumers and SES, where SES is performed as a leader and prosumers are followers. Besides, prosumers participate in the market to optimize social welfare via peer-to-peer (P2P) energy sharing with other prosumers or energy trading with SES and the main grid. We prove the existence and the uniqueness of the Stackelberg equilibrium (SE). Considering the supply and demand ratio and market contribution, a personalized pricing approach is presented for prosumers and SES to promote market competitiveness. We leverage the fully decentralized algorithm based on the fast alternating direction method of multiplier (ADMM) to solve the model of prosumers. Finally, numerical simulation demonstrates that the proposed transactive framework is economically beneficial for all participants, including SES and prosumers.