Adaptive risk-difference-based network pricing for shared energy storage in distribution networks

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Authors: Lidong Huang, H Liu, Zihan He, Bin Liu, Hongtao Wang, Siyu Ma
Cited by: 1
References: 19

Abstract

Shared energy storage (SES) enables centralized deployment of storage resources to serve multiple users, significantly reducing investment costs and improving asset utilization. However, the profit-driven SES operation may intensify line loadings and introduce additional operational risk, due to its significant impact on distribution network power flows. Existing studies typically incorporate network constraints into storage scheduling models as passive feasibility conditions, without quantifying the network risk induced by SES, thereby failing to provide economic signals that guide SES to mitigate network risk. To address this limitation, this paper proposes a risk-difference-based network pricing and coordinated scheduling approach for SES operation. A continuous risk function based on line loadings is established, and the risk difference between scenarios with and without SES participation is employed for network pricing. Through first-order approximation, the system-level risk difference is transformed into nodal and temporal marginal risk prices, which directly guide storage dispatch decisions according to network operating conditions. Based on this pricing mechanism, a price-guided SES scheduling model is formulated and coordinated with network constraints via the alternating direction method of multipliers (ADMM). Simulation results demonstrate that the proposed mechanism can automatically generate penalty or incentive effects under different conditions, guiding SES to mitigate network operation risk while preserving its economic performance.

Fields of Study & Subjects

Optimal Power Flow Distribution Microgrid Control and Optimization Smart Grid Energy Management

Publication details

Journal / source
Applied Energy
Publisher
Elsevier BV
Volume
421
Pages
128261–128261
Publication date
18 June 2026
Language
EN