Community storage for firming

TitleCommunity storage for firming
Publication TypeConference Paper
Year of Publication2016
AuthorsChenye Wu, Jared Porter, Kameshwar Poolla
Conference Name2016 IEEE International Conference on Smart Grid Communications (SmartGridComm)
Date Published11/2016
Conference LocationSydney, Australia

We analyze the benefit of storage capacity sharing for a set of consumers in a community (e.g., an apartment building or an industrial park). Each consumer has its own choice of either installing its own storage system or investing in a shared storage system. More precisely, they will decide on the capacity of the storage system to minimize the installation cost subject to a chance constraint for firming (e.g., to limit the exposure risk to the real time market). If the consumers decide to operate a shared storage system, they must also decide on a scheme to allocate the costs. We formulate the problem as a cooperative game and identify an efficient and stable cost allocation rule. In settings where certain statistical information is private, the cooperative storage sharing game becomes embedded with a non-cooperative information reporting game. We show our proposed cost allocation rule induces all consumers to report their private information truthfully.