Ex-post Stable and Fair Payoff Allocation for Renewable Energy Aggregation
Computer Science and Game Theory
2017-01-12 v2 Optimization and Control
Abstract
Aggregating statistically diverse renewable power producers (RPPs) is an effective way to reduce the uncertainty of the RPPs. The key question in aggregation of RPPs is how to allocate payoffs among the RPPs. In this paper, a payoff allocation mechanism (PAM) with a simple closed-form expression is proposed: It achieves stability (in the core) and fairness both in the "ex-post" sense, i.e., for all possible realizations of renewable power generation. Furthermore, this PAM can in fact be derived from the competitive equilibrium in a market. The proposed PAM is evaluated in a simulation study with ten wind power producers in the PJM interconnection.
Keywords
Cite
@article{arxiv.1612.09523,
title = {Ex-post Stable and Fair Payoff Allocation for Renewable Energy Aggregation},
author = {Hossein Khazaei and Yue Zhao},
journal= {arXiv preprint arXiv:1612.09523},
year = {2017}
}