A Cooperative Game Theory Approach to Encourage Electric Energy Supply Reliability Levels and Demand-Side Flexibility

Electrical energy supply services are characterised by unpredictable risks that affect both distribution network operators (DSOs) and electricity consumers. This paper presents an innovative cooperative game theory (GT) framework to enhance electric energy supply reliability and demand-side flexibility by aligning the interest of DSOs and consumers. The research investigates the performance of the proposed GT model under different distribution network (DN) topologies and fault intensities, explicitly considering outage durations and restoration times. A cooperation mechanism based on penalty compensation is introduced to simulate realistic interactions between DSOs and consumers. Simulation results confirm that adaptive cooperation under this framework yields significant reliability improvements of up to 70% in some DN configurations. The GT-based approach supports informed investment decisions, improved stakeholder satisfaction, and reduced risk of service disruptions. Findings suggest that integrated GT planning mechanisms can lead to more resilient and consumer-centred electricity distribution systems.