A Market Framework Considering Cooperation Between Renewable Generators and Shared Energy Storage

Renewable energy producers, such as wind and photovoltaic (PV) power generators, are increasingly participating in electricity markets. Nonetheless, severe uncertainties of renewable sources can introduce significant bid deviations, impacting their competitiveness in the market. In this context, collaborating with shared energy storage system (SESS) shows huge potentials for renewable generators to tackle the problem. In this study, we propose a novel market framework that involves a cooperative hybrid resource coalition (HRC), formed by wind and PV power producers cooperating with SESS, competing in the day-ahead market with thermal power generators. By allowing power sharing within the coalition and empowering the SESS to mitigate bid deviations and leverage market arbitrage, the market framework significantly boosts the utilization rate of energy storage. Based on the market framework, a multi-period game-theoretic model is developed to examine the price-making behaviors of the HRC and SESS. Scenario generation and reduction methods are used to simulate the uncertainties associated with wind and PV. Furthermore, using the Shapley value method, profits are fairly allocated among the coalition members within the HRC. Finally, numerical examples are used to validate the effectiveness of the proposed market framework.