A Shapley value-based Distributed AC OPF Approach for Redispatch Congestion Cost Allocation

The progressing energy transition induces a growing need for redispatch congestion management, and, thereby, a fair distribution of its respective costs among the different system operators. In this light, a very recent paper uses the Shapley value as such a fair allocation rule to assign redispatch congestion costs to system operators. However, this approach is based on DC optimal power flow (OPF) and requires the sharing of detailed grid models from all system operators. This is not preferred by them due to data privacy concerns. W.r.t. real-world implementation, the present paper extends the method by using AC OPF problem formulations for more realistic results, and solving them by using a distributed optimization algorithm, i.e., Augmented Lagrangian based Alternating Direction Inexact Newton method (aladin), for preserving data privacy. Simulation results of an illustrative example show great potential of the proposed distributed approach in the aspects of both solution accuracy and computing time. This makes the presented approach generically feasible for real applications in the energy transition.