Interactions between Transmission and Distribution Side Energy Storage Planning in Electricity Market Environments

Energy storage is a key technology in the power system dominated by renewables. With falling energy storage costs and evolving deregulated electricity markets, the electricity market environment should be considered when planning energy storage. As coordinated planning of transmission and distribution (T&D) side energy storage in electricity market environment remains largely unexplored, this paper proposes a coordinated planning model for T&D side energy storage considering the impact of the electricity market. A bi-level optimization problem is formulated for the transmission-side energy storage planning of the strategic storage owner. The prosumers under the same distribution network (DN) jointly build a shared energy storage based on the Nash bargaining theory. To connect the T&D systems, the retailer is the electricity trading agent of prosumers in the wholesale electricity market and makes retail price in the retail electricity market. The model is solved through an iterative method, utilizing a bisection-based heuristic method to avoid the oscillation during the iteration process. Finally, the numerical results were tested on a modified IEEE 30-bus system to analyze the interactions between T&D side energy storage planning in electricity market environments.