Optimal Community Energy Storage System Operation in a Multi-Power Consumer System: A Stackelberg Game Theory Approach

The proliferation of community energy storage systems (CESSs) necessitates effective energy management to address financial concerns. This paper presents an efficient energy management scheme for heterogeneous power consumers by analyzing various cost factors relevant to the power system. We propose an authority transaction model based on a multi-leader multi-follower Stackelberg game, demonstrating the existence of a unique Stackelberg equilibrium to determine optimal bidding prices and allocate authority transactions. Our model shows that implementing a CESS can reduce total electricity costs by 16% compared to the conventional case that does not account for authority transactions among CESS users, highlighting its effectiveness in practical power systems.