Fair Cost Allocation in Energy Communities Under Forecast Uncertainty

Energy communities (ECs) are an increasingly studied path toward improving prosumer coordination. A central challenge of ECs is to allocate cost savings fairly to members. While many allocation mechanisms have been developed, existing literature does not account for the implications of inaccurate forecasts on the fairness of the allocation. We introduce a set of fairness conditions for imperfect knowledge allocation and show that these conditions constitute a Pareto front. We demonstrate how a well-established allocation scheme, the Shapley value mechanism (SVM), has unfavorable consequences for flexibility-providing community members and generally does not yield solutions on this Pareto front. In contrast, we interpret dispatch cost under imperfect knowledge as being composed of two components. The first represents the cost under perfect knowledge, and the second represents the cost arising from inaccurate forecasts. Our proposed mechanism extends an SVM-based allocation of the perfect knowledge cost by allocating the remaining cost in a way that guarantees finding solutions on the Pareto front. To this end, we formulate a convex multi-objective optimization problem that can efficiently be solved as a linear or quadratic program.

Authors

Institutions

Publication Details

Journal
IEEE Open Access Journal of Power and Energy
Published
2024-12-19
DOI
https://doi.org/10.1109/oajpe.2024.3520418
Citations
2
Primary Topic
Smart Grid Energy Management
Type
article
Field-Weighted Citation Impact
0.42

Funders

Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Fair Cost Allocation in Energy Communities Under Forecast Uncertainty

Matthias Althoff, Michael Eichelbeck
2 citations
IEEE Open Access Journal of Power and Energy
Smart Grid Energy Management
0.42
article

Fair Cost Allocation in Energy Communities Under Forecast Uncertainty

Matthias Althoff, Michael Eichelbeck
article en
2 citations

Abstract

Energy communities (ECs) are an increasingly studied path toward improving prosumer coordination. A central challenge of ECs is to allocate cost savings fairly to members. While many allocation mechanisms have been developed, existing literature does not account for the implications of inaccurate forecasts on the fairness of the allocation. We introduce a set of fairness conditions for imperfect knowledge allocation and show that these conditions constitute a Pareto front. We demonstrate how a well-established allocation scheme, the Shapley value mechanism (SVM), has unfavorable consequences for flexibility-providing community members and generally does not yield solutions on this Pareto front. In contrast, we interpret dispatch cost under imperfect knowledge as being composed of two components. The first represents the cost under perfect knowledge, and the second represents the cost arising from inaccurate forecasts. Our proposed mechanism extends an SVM-based allocation of the perfect knowledge cost by allocating the remaining cost in a way that guarantees finding solutions on the Pareto front. To this end, we formulate a convex multi-objective optimization problem that can efficiently be solved as a linear or quadratic program.

IEEE Open Access Journal of Power and EnergyVol. 12
Technical University of Munich (DE)
Deutsche Forschungsgemeinschaft
Affordable and clean energy
Openalex Percentile: Top 36%
Smart Grid Energy Management
0.42
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.