Benefit allocation strategy for energy storage operators based on insurance actuarial theory

Authors

Da XIE, School of Electrical Engineering, Shanghai University of Electric Power, Shanghai 200090, China; School of Electronic Information and Electrical Engineering, Shanghai Jiao Tong University, Shanghai 200240, China
Rongrong DAI, School of Electrical Engineering, Shanghai University of Electric Power, Shanghai 200090, China
Shaowei GAO, School of Electrical Engineering, Shanghai University of Electric Power, Shanghai 200090, China
Shunfu LIN, School of Electrical Engineering, Shanghai University of Electric Power, Shanghai 200090, China
Zhaowei XU, China Pacific Property Insurance Co., Ltd., Shanghai 200120, China
Yiyun XIONG, School of Electronic Information and Electrical Engineering, Shanghai Jiao Tong University, Shanghai 200240, China

Keywords

power outage insurance;revenue from energy storage;peak-valley arbitrage;premium determination;profit distribution

Abstract

Energy storage operators can enhance the reliability of power supply and mitigate the losses caused by power outages. To further expand the application scenarios of energy storage for improving power supply reliability and increase the profits of energy storage operators, a profit allocation strategy based on insurance actuarial theory is proposed. Firstly, the Bűhlmann premium model is constructed by fitting the distribution of power outage losses, integrating credibility theory with the pure premium model. Then, a corrected failure rate model based on a health index is established, and the minimum path method is employed to calculate the insurance indemnity probabilities for various users in the event of a power outage. Lastly, by combining power outage insurance with peak-shaving and valley-filling arbitrage, a profit model for energy storage operators is constructed to maximize their profits over the entire lifecycle, which is then compared with their profits without participating in power outage insurance. The research findings indicate that collaborating with insurance companies can significantly boost the profits of energy storage operators and accelerate the recovery of investment costs.

DOI

10.19781/j.issn.1673-9140.2024.05.025

First Page

247

Last Page

261

Recommended Citation

XIE, Da; DAI, Rongrong; GAO, Shaowei; LIN, Shunfu; XU, Zhaowei; and XIONG, Yiyun (2024) "Benefit allocation strategy for energy storage operators based on insurance actuarial theory," Journal of Electric Power Science and Technology: Vol. 39: Iss. 5, Article 25.
DOI: 10.19781/j.issn.1673-9140.2024.05.025
Available at: https://jepst.researchcommons.org/journal/vol39/iss5/25