2016/12/30 by Hossein Khazaei, Yue Zhao, Khazaei, Hossein +1
Computer Science · Mathematics · #Computer Science and Game Theory (cs.GT) #FOS: Computer and information sciences #FOS: Mathematics #Optimization and Control (math.OC) #cs.GT #math.OC
paper · pdf · doi:10.48550/arxiv.1612.09523
arxiv created 2017/01/11 · arxiv updated 2017/01/12
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.