Fair Division of Costs in Green Energy Markets

Jens Leth Hougaard, Dorte Kronborg, Aleksandrs Smilgins

Publikation: Bidrag til tidsskriftTidsskriftartikel

Abstrakt

This paper considers cost allocation in networks where agents are characterized by stochastic demand and supply of a non-storable good, e.g. green energy. The grid itself creates possibilities of exchanging energy between agents and we propose to allocate common costs in proportion to the economic gain of being part of the grid. Our model includes a set of fundamental requirements for the associated trading platform. In particular, it is argued that a suitable mechanism deviates from a traditional market. The approach is illustrated by simulations.
OriginalsprogEngelsk
TidsskriftEnergy: An International Journal
Vol/bind139
Sider (fra-til)220-230
Antal sider11
ISSN0360-5442
DOI
StatusUdgivet - nov. 2017

Emneord

  • Cost allocation
  • Networks
  • Gains
  • Electricity
  • Smart grids

Citationsformater