The integration of renewable energy sources (RES) into modern electricity grids introduces substantial challenges, primarily due to their inherent variability and the critical need for real-time supply–demand balancing. Community Battery Storage system (CBSS) has emerged as an effective strategy to address these challenges, enhancing grid stability and providing localized economic benefits through optimized energy storage and management. This paper presents a novel energy trading framework that prioritizes community welfare by balancing the reduction of user energy costs with CBSS revenue generation. The proposed model employs a multi-objective optimization approach, utilizing the epsilon-constraint method to strike an optimal balance between minimizing user energy expenditures and maximizing CBSS profitability. Simulation results conducted on a residential community with varying levels of user participation indicate significant cost savings for CBSS users and notable improvements in grid reliability. The analysis demonstrates that increased user participation enhances CBSS operational efficiency, leading to substantial user cost reductions while ensuring sustainable revenue generation. Furthermore, strategic pricing management and active user engagement are identified as crucial factors in optimizing system performance and achieving optimal energy distribution. These findings underscore the potential of CBSS systems to bolster renewable energy self-consumption, reduce dependence on grid-supplied electricity, and promote economic resilience within energy communities. • Develops a CBSS optimization framework for lower costs and improved grid stability. • Uses epsilon-constraint to balance CBSS revenue and user energy cost savings. • Shows up to 40% user energy cost reduction in residential CBSS case studies. • Highlights the importance of pricing, participation, and policy for CBSS adoption.
Al-Hanahi et al. (2026) studied this question.