Fairness for distribution network operations and planning

TL;DR

This paper reviews fairness notions and metrics in distribution network planning, analyzing their mathematical complexities and implications for stakeholders to promote transparent decision-making.

Contribution

It compiles and compares various fairness metrics and discusses their impact on optimization and stakeholder outcomes in distribution network operations.

Findings

Fairness metrics vary from linear to non-linear optimization.

Different fairness notions influence stakeholder utility and system efficiency.

The review supports transparent and consistent planning decisions.

Abstract

The incorporation of fairness into the distribution network (DN) planning and operation has become a key goal of recent studies. The cost of implementing fairness, denominated the price of fairness (PoF), covers the efficiency that is renounced for attaining social cohesion through fair outcomes. Locational disparity makes fairness schemes emerge to level the consumers playing field. However, fairness encompasses a range of notions. From egalitarian to merit-based criteria, various metrics are implemented as a tool for measuring equitable utility distribution. These have different mathematical complexities, from linear to non-linear programming cases, which affect their overall applicability. Hence, this study compiles the overarching fairness notions and metrics, reviewing how these affect stakeholders and the inherent mathematical optimisation in resource allocation problems. The aim is to support consistent and transparent planning and decision-making within DN operations.