Ensuring profitability of retailers via Shapley Value based demand response

Abstract Demand response (DR) program caters finance incentives to electricity users to reduce demand in contingency. This paper has proposed a Shapley Value (SV) determined incentives apportioning method for end-users when wholesale pricing rises. SV achieves maximal profits equilibrium for each participant in grand coalition game. The effects of SV-based DR are examined with two IEEE benchmark distribution networks, 33-bus and 8500-node. Numerical studies in 33-bus distribution network unveil that by considering the fairness mechanism in SV-DR program, retailers earn 4.39% more profits and SV improves users willingness 1.47 larger than the conventional DR program. It is demonstrated that SV-DR program helps retailers assure profitability, and also enhances customers initiatives.