A Fair and Self-Sufficient Value Stack-Based Compensation Scheme for DERs Enhancing Network Performance

Abstract

Optimal scheduling of smart inverter-assisted distributed energy resources (DERs) benefits power system operation and planning entities. The comprehensive evaluation and fair allocation of these co-existing benefits should be the prime criteria for designing a compensation scheme. This work focuses on classifying, quantifying, and allocating multiple benefits extracted through phase-specific optimal power injection in distribution networks. This paper proposes a fair and self-sufficient compensation scheme that stacks uniquely assigned benefit components among the DERs. Using a rectangular branch-current component-based approach, this paper proposes a method to quantify the cooperative optimal power dispatch benefits, broadly classified as capacity deferral and operational benefits. In addition, this work employs the unitary participation-based Aumann Shapley value method to allocate the joint-coalitional benefits fairly among various DERs. By implementing the proposed scheme on the IEEE European distribution network for a long time horizon, various attributes of the proposed scheme are analyzed. The proposed compensation scheme provides the distribution system operator with a financial tool to stimulate DERs' coordination in the optimal power delivery action.