Strategic Storage Investment and Operation Under Uncertainty: Behavioral Economics Analysis

• Published in: IEEE transactions on network science and engineering Vol. 12; no. 2; pp. 1329 - 1342
• Main Authors: Huang, Qisheng, Xu, Jin, Sun, Peng, Liu, Bo, Wu, Ting, Courcoubetis, Costas
• Format: Journal Article
• Language: English
• Published: Piscataway IEEE 01.03.2025; The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
• Subjects: bounded rationality; Consumers; Costs; Decisions; demand uncertainty; Distortion; Electricity; Energy storage; Expected utility; Games; Investment; Pricing; prospect theory; Renewable energy sources; Risk levels; Risk management; risk preferences; Uncertainty; Utility theory

In this paper, we propose a two-stage Stackelberg game to investigate the strategic storage investment and operation interaction between the storage aggregator and consumers under demand uncertainty. In the first stage, the storage aggregator makes the storage investment and pricing decisions to max...