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Shapley Value-Based Payment Calculation for Energy Exchange between Micro- and Utility Grids

Author

Listed:
  • Robin Pilling

    (Graduate Institute of Industrial Engineering, National Taiwan University, Taipei 10617, Taiwan)

  • Shi Chung Chang

    (Department of Electrical Engineering, National Taiwan University, Taipei 10617, Taiwan)

  • Peter B. Luh

    (Department of Electrical and Computer Engineering, University of Connecticut, Storrs, CT 06269, USA)

Abstract

In recent years, microgrids have developed as important parts of power systems and have provided affordable, reliable, and sustainable supplies of electricity. Each microgrid is managed as a single controllable entity with respect to the existing power system but demands for joint operation and sharing the benefits between a microgrid and its hosting utility. This paper is focused on the joint operation of a microgrid and its hosting utility, which cooperatively minimize daily generation costs through energy exchange, and presents a payment calculation scheme for power transactions based on a fair allocation of reduced generation costs. To fairly compensate for energy exchange between the micro- and utility grids, we adopt the cooperative game theoretic solution concept of Shapley value. We design a case study for a fictitious interconnection model between the Mueller microgrid in Austin, Texas and the utility grid in Taiwan. Our case study shows that when compared to standalone generations, both the micro- and utility grids are better off when they collaborate in power exchange regardless of their individual contributions to the power exchange coalition.

Suggested Citation

  • Robin Pilling & Shi Chung Chang & Peter B. Luh, 2017. "Shapley Value-Based Payment Calculation for Energy Exchange between Micro- and Utility Grids," Games, MDPI, vol. 8(4), pages 1-12, October.
    • Handle: RePEc:gam:jgames:v:8:y:2017:i:4:p:45-:d:116075
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    References listed on IDEAS

    as
    1. Friedman, Eric & Moulin, Herve, 1999. "Three Methods to Share Joint Costs or Surplus," Journal of Economic Theory, Elsevier, vol. 87(2), pages 275-312, August.
    2. Bracco, Stefano & Delfino, Federico & Pampararo, Fabio & Robba, Michela & Rossi, Mansueto, 2014. "A mathematical model for the optimal operation of the University of Genoa Smart Polygeneration Microgrid: Evaluation of technical, economic and environmental performance indicators," Energy, Elsevier, vol. 64(C), pages 912-922.
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    Cited by:

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    2. Cátia Silva & Pedro Faria & Zita Vale, 2019. "Demand Response and Distributed Generation Remuneration Approach Considering Planning and Operation Stages," Energies, MDPI, vol. 12(14), pages 1-23, July.

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