Optimal battery pricing under uncertain demand management

The battery has been found to be valuable in the load shifting and reduction in energy systems. However, the additional benefits (cost reduction, reliability increment and so on) under emerging demand response programs are not clear for the potential battery customers. At the same time, the battery market is immature due to the rapid technology development and undetermined market. Therefore, the study of the potential battery market under the emerging incentive programs is important for both battery suppliers and customers. We first develop a generic model to co-optimize the heterogeneous customers' decisions in the battery investment and demand response program participation. The expected multi-objective benefits (cost, reliability and discomfort) of various customers are calculated under different load scenarios and demand response programs. The optimal battery selling prices are then computed under monopoly and oligopoly markets based on the derived aggregated demand-price curve of representative potential battery customers.