Fair Energy Allocation in Risk-aware Energy Communities
Abstract
This work introduces a decentralized mechanism for the fair and efficient allocation of limited renewable energy sources among consumers in an energy community. In the proposed non-cooperative game, the self-interested community members independently decide whether to compete or not for access to RESs during peak hours and shift their loads analogously. In the peak hours, a proportional allocation (PA) policy is used to allocate the limited RESs among the competitors. The existence of a Nash equilibrium (NE) or dominant strategies in this non-cooperative game is shown, and closed-form expressions of the renewable energy demand and social cost are derived. Moreover, a decentralized algorithm for choosing consumers' strategies that lie on NE states is designed. The work shows that the risk attitude of the consumers can have a significant impact on the deviation of the induced social cost from the optimal. Besides, the proposed decentralized mechanism with the PA policy is shown to attain a much lower social cost than one using the naive equal sharing policy.
Cite
@article{arxiv.2303.07879,
title = {Fair Energy Allocation in Risk-aware Energy Communities},
author = {Eleni Stai and Lesia Mitridati and Ioannis Stavrakakis and Evangelia Kokolaki and Petros Tatoulis and Gabriela Hug},
journal= {arXiv preprint arXiv:2303.07879},
year = {2023}
}