Optimal payment sharing mechanism for renewable energy aggregation

Abstract

Renewable energy aggregation has been introduced as a solution to reduce the uncertainty of this type of sources. In this work we propose a new mechanism to share the profit of the aggregate amongst individual producers. Calculating optimal contract for individual producers and the aggregate is the first requirement in order to propose a payment sharing mechanism that has been addressed in the literature. Different researchers utilized various methods from coalitional game theory to statistical methods to introduce payment sharing mechanisms. In this work we propose a novel payment sharing mechanism that maximizes the aggregate profit in first place. The payments to the individuals are based on their actual production instead of the expected. We also show that this method will pay more to the individuals in average compared to previous methods.