Fairness by design in shared-energy allocation problems
arxiv(2024)
Abstract
This paper studies how to aggregate prosumers (or large consumers) and their
collective decisions in electricity markets, with a focus on fairness. Fairness
is essential for prosumers to participate in aggregation schemes. Some
prosumers may not be able to access the energy market directly, even though it
would be beneficial for them. Therefore, new companies offer to aggregate them
and promise to treat them fairly. This leads to a fair resource allocation
problem.
We propose to use acceptability constraints to guarantee that each prosumer
gains from the aggregation. Moreover, we aim to distribute the costs and
benefits fairly, taking into account the multi-period and uncertain nature of
the problem. Rather than using financial mechanisms to adjust for fairness
issues, we focus on various objectives and constraints, within decision
problems, that achieve fairness by design. We start from a simple single-period
and deterministic model, and then generalize it to a dynamic and stochastic
setting using, e.g., stochastic dominance constraints.
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