A new two-stage game-based approach for energy storage pricing in radial distribution system considering uncertainty

In this paper, a new approach for the remuneration of energy storage (ES) in radial distribution systems is proposed. The core of the proposed pricing method is predicated on loss reduction of the system while ensuring the maximum benefit of the ESs using stochastic scenarios. The presented approach considers both injection and withdrawn of power and its contribution to loss deviation is the main key to encourage ESs to participate in supplying the demand of the system.Furthermore, the presented approach is an iterative solution inherently which gives a proper tool to assess the day-ahead operation of the system by utilizing financial incentives. Actually, private ownership of the ESs is taken into account and at the same time, the Distribution Company (Disco) is enabled to have an estimation of the state of the system in the next 24 h. Finally, the proposed approach is tested on IEEE 33-bus system to illuminate the effectiveness of the proposed model.