Optimal electricity storage sharing mechanism for single peaked time-of-use pricing scheme

Abstract

Sharing economy has disrupted many industries. We foresee that electricity storage systems will enable sharing economy in the electricity sector, though its optimal utilization is a delicate task, especially for general Time-of-Use (ToU) pricing, which consists of multiple tiers. The difficulty comes from the hedging against multiple tiers and the temporally coupled decisions. To design the efficient energy sharing mechanism for single peaked ToU scheme, we first identify that it suffices to understand the arbitrage policies for two forms of 3-tier ToU schemes. Based on such analysis, we propose our sharing mechanism design, with two coupled games, namely the capacity decision game and the aggregator user interaction game. We then submit that under mild conditions, the sharing mechanism yields a unique equilibrium, which supports the maximal social welfare.