Document Type : Research Articles

Authors

• Sahar Mobasheri ¹
• Masoud Rashidinejad ¹
• Amir Abdollahi ¹
• Mojgan MollahassaniPour ²
• Sobhan Dorahaki ³

¹ Department of Electrical Engineering Shahid Bahonar University of Kerman, Iran

² Faculty of Electrical and Computer Engineering, University of Sistan and Baluchestan Zahedan, Iran

³ Electrical Department of Electrical Engineering, Qatar University, Doha, Qatar

Abstract

Renewable Energy Communities (RECs) have emerged as an effective paradigm for enabling local stakeholders to jointly manage distributed renewable generation, central energy storage, and hydrogen parking lots. While such structures can participate in local energy markets and create collective profits, fair profit allocation among heterogeneous members remains challenging. This paper proposes an integrated two-stage bi-level framework for RECs’ operation and fair profit allocation in a local energy market. In the first stage, a bi-level optimization model captures the strategic interaction between the manager of REC and the Distribution System Operator (DSO), where the REC maximizes profit and the DSO minimizes operating costs. In the second stage, cooperative game-theoretic allocation mechanisms are employed to distribute the cooperative surplus among members. A utility-based fairness indicator is further introduced to assess allocation outcomes from a behavioral perspective. The proposed model is implemented in GAMS and solved using the CPLEX solver. Numerical results show that coordinated operation increases total community profit by 14.03% compared with isolated operation.

Keywords

• Behavioral economics
• Fairness index
• Local energy market
• Renewable energy community
• Game theory

Main Subjects

• Power systems