A Cooperative Game-Theoretic Framework for Real-Time Deviation Settlement in Local Energy Communities

This paper proposes a cooperative game-theoretical framework for the financial settlement of real-time deviations in Community-Based Local Energy Markets (CB-LEMs). The real-time settlement process is modeled as a transferable-utility cooperative game, and the resulting Real-Time Local Energy Market (RTLEM) game is shown to be superadditive and balanced. We analyze two game-theoretical allocation mechanisms, the Shapley value and the nucleolus, and evaluate their efficiency, individual rationality, coalitional rationality, and temporal-aggregation properties. We subsequently compare these mechanisms with a settlement rule based on proportional imbalance responsibility. The three mechanisms are efficient and individually rational, but only the nucleolus is guaranteed to satisfy coalitional rationality for every RTLEM instance. The proposed framework is demonstrated using real-world data from a residential energy community in Amsterdam, showing the trade-offs among the three allocation mechanisms in terms of surplus distribution, coalitional stability, interpretability, and computational requirements.

Authors

Publication Details

Journal
arXiv (Cornell University)
Published
2026-11-02
DOI
https://doi.org/10.48550/arxiv.2611.03030
Primary Topic
Smart Grid Energy Management
Type
preprint
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
preprint

A Cooperative Game-Theoretic Framework for Real-Time Deviation Settlement in Local Energy Communities

Jose L. Crespo-Vazquez, Ángel M. González-Rueda, Tarek Alskaif, Iago Núñez Lugilde
arXiv (Cornell University)
Smart Grid Energy Management
preprint

A Cooperative Game-Theoretic Framework for Real-Time Deviation Settlement in Local Energy Communities

Jose L. Crespo-Vazquez, Ángel M. González-Rueda, Tarek Alskaif, Iago Núñez Lugilde
preprint en

Abstract

This paper proposes a cooperative game-theoretical framework for the financial settlement of real-time deviations in Community-Based Local Energy Markets (CB-LEMs). The real-time settlement process is modeled as a transferable-utility cooperative game, and the resulting Real-Time Local Energy Market (RTLEM) game is shown to be superadditive and balanced. We analyze two game-theoretical allocation mechanisms, the Shapley value and the nucleolus, and evaluate their efficiency, individual rationality, coalitional rationality, and temporal-aggregation properties. We subsequently compare these mechanisms with a settlement rule based on proportional imbalance responsibility. The three mechanisms are efficient and individually rational, but only the nucleolus is guaranteed to satisfy coalitional rationality for every RTLEM instance. The proposed framework is demonstrated using real-world data from a residential energy community in Amsterdam, showing the trade-offs among the three allocation mechanisms in terms of surplus distribution, coalitional stability, interpretability, and computational requirements.

arXiv (Cornell University)
Smart Grid Energy Management
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.

Laika access coming soon