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Sharing electricity storage

Authors: Chenye Wu; Dileep M. Kalathil; Kameshwar Poolla; Pravin Varaiya;

Sharing electricity storage

Abstract

The emerging sharing economy has disrupted the housing and transportation sectors. The underlining business model exploits underutilized infrastructure through sharing. In this paper, we explore sharing economy opportunities in electricity sector. There are considerable obstacles to sharing electricity. First, the flow of electricity is governed by Kirchoff's Laws and we cannot prescribe a point to point path for its flow. Second, regulatory and policy obstacles may impede sharing opportunities. As a result, early adopters will be in the context of behind-the-meter sharing opportunities. In this paper, we study one of these opportunities. Specifically, we consider a collection of firms that invest in storage to arbitrage against the time of use pricing they face. We show that the investment decision of the firms form a Nash equilibrium which supports the social welfare. We offer explicit expressions for optimal storage investments and equilibrium prices for shared storage in a spot market. Finally, we use field data to assess the performance of our proposed sharing scheme.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
20
Top 10%
Top 10%
Top 10%
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