Balancing Benefit Distribution for Energy Storage Sharing based on Nash Bargaining Solution

Energy storage is acknowledged to be an essential part of modern energy technologies and smart grids. Energy storage can provide energy arbitrage by charging at off-peak price and discharging at peak price. The energy arbitrage can be further amplified if allowing multiple users to share the energy storage. In order to encourage the users to participate the cooperation for sharing energy storage, we develop a Nash Bargaining model to achieve the efficiency and fairness for the energy storage sharing system. The proposed model can maintain two types of fairness, the fair payoff for exchanging stored energy and the fair distribution of cooperative benefits. The model is formulated as a multiplicative problem with bilinear constraints, and several linearization techniques such as Piecewise McCromick Relaxation are applied to facilitate solving this problem. Experimental results demonstrate that the Nash Bargaining model can simultaneously optimize the energy arbitrage and balance the distribution of the cooperative benefits for energy storage sharing. Also the adopted solution techniques are validated to be able to solve the nonlinear problem efficiently.