Shapley value-based cost allocation for Battery Energy Storage Systems in Power Grids with a High Share of Renewables

Battery energy storage systems (BESS), e.g., grid boosters, are becoming increasingly important for the stable, robust, and flexible operation of the transmission power grid.BESS can decrease costly re-dispatch measures by providing additional capacity in the grid.They can enhance congestion management through peak shifting and even reduce the need for expensive new transmission lines.For these benefits, a critical challenge is their efficient placement in the grid and their dimensioning.Our work adds to BESS placement evaluation by proposing a novel utility measure for the use of a storage unit.The proposed utility measure is based on the Shapley value from cooperative game theory.As a storage shows its benefit over time, the measure is evaluated on a horizon using multi-period AC optimal power flow.We test our approach on a radial five-node test grid and a modified IEEE case14 grid, including storage units and renewable energy sources that can be curtailed.The results show that the proposed method is able to evaluate the BESS' utility, including the provided reactive power compensation.