A New Cooperative Framework for a Fair and Cost-Optimal Allocation of Resources within a Low Voltage Electricity Community

TL;DR

This paper introduces a collaborative framework for low voltage electricity communities that optimizes resource allocation and cost sharing, leveraging flexibility and power flow constraints to achieve fair and cost-effective power exchanges.

Contribution

It proposes a novel cooperative framework combining cost minimization with fair cost distribution methods using Shapley value and Nash equilibrium in low voltage communities.

Findings

Both schemes significantly reduce individual costs.

Shapley-based method emphasizes flexible resource value.

Nash equilibrium rewards user flexibility consent.

Abstract

This paper presents an original collaborative framework for power exchanges inside a low voltage community. The community seeks to minimize its total costs by scheduling on a daily basis the resources of its members. In this respect, their flexibility such as excess storage capacity, unused local generation or shiftable load are exploited. Total costs include not only the energy commodity, but also grid fees associated to the community operation, through the integration of power flow constraints. In order to share the community costs in a fair manner, two different cost distributions are proposed. The first one adopts a distribution key based on the Shapley value, while the other relies on a natural consensus defined by a Nash equilibrium. Outcomes show that both collaboration schemes lead to important savings for all individual members. In particular, it is observed that the Shapley-based solution gives more value to mobilized flexible resources, whereas the Nash equilibrium rewards the potential flexibility consent of end-users.