An Aumann-Shapley Approach to Allocate Capacity Deferral Benefit Among Distributed Energy Resources

High penetration of distributed energy resources provide power system planners with a practical substitute to high cost reinforcement plans. Locating DERs near load centers and optimizing their power dispatch, can reduce the utilization of power system assets resulting in the deferral of investments. To incentivize DERs to provide desired dispatch, it is essential to quantify their individual contribution towards capacity deferral benefits. This paper introduces an Aumann Shapley based allocation scheme that distrubutes deferral benefit among various DERs. The scheme is analytically validated against key fairness axioms desired by the DER stakeholders. A series of case studies on IEEE European distribution network are conducted to assess its fairness attributes. The results demonstrate that the proposed allocation scheme satisfies the desired fairness standards and also provides locational signal for future DER installations.