Trading Strategy of Shared Energy Storage Based on Stackelberg Game Theory Model

This paper investigates the non-cooperative game problem in shared energy storage trading. First, a multi-entity bi-level optimization model is established within the framework of the Stackelberg game, which accounts for demand charging costs, strategies of energy storage users, and power constraints of distribution transformers. The model aims to assist in optimizing the energy storage operator's trading strategy and enhancing its competitiveness. Second, the Karush-Kuhn-Tucker conditions are applied to reformulate the lower-level model, transforming the bi-level model of shared energy storage into a single-level model. The large-M method is then applied to linearize the model. Finally, the effectiveness of the proposed method is verified by simulation results.