Minmax profit sharing scheme for cooperative wind power producers

Abstract

In this paper, we present a coalitional game theoretic approach to address a profit sharing problem for cooperative wind power producers (WPP) that participate in the short-term energy market. Our design aims to determine the percentage quota of total cooperation's expected profit allocated to each WPP considering the uncertainties of wind and electricity prices. In particular, we propose a minmax core profit sharing scheme that considers the profit gains' deviation among all coalitions of WPPs. Then, we present a row constraint generation based procedure to compute the allocated quota with affordable computational complexity. Numerical results show that the proposed profit sharing scheme provides more efficient, rational, and fairer allocations than conventional cooperative core allocation design and requires low computation effort suitable for large-scale applications.