Outages Cost Estimation for Residential Sector

Complementary‐based coalition formation for energy microgrids

“…When there is insufficient energy to meet consumer demands, the energy deficits are understood to produce discomfort in a nonlinear fashion, ie, as energy deficits increase, discomfort increases to a greater‐than‐linear degree. This nonlinear discomfort function accords with real‐life scenarios where individuals are willing to pay disproportionately more when faced with deficits (eg, food, water, and energy), a phenomenon that has been reported in the literature (see the works of Carlsson and Martinsson, Carlsson et al, and Shaalan). Our intention has been to show how our model can be used to share power in coalitions so that discomfort is reduced on both the individual and aggregate levels.…”

“…The specific values used in this function could be adjusted for particular circumstances, and the specific values chosen here are for illustration purposes. However, we do believe that the nonlinear shape of this function is generally representative of how discomfort is related to power consumption deficits to model scenarios widely reported …”

“…When a community encounters an energy deficit, it will suffer “discomfort” because of the power shortage. We know from previous studies that people or communities are willing to pay more than 100% of the original electric tariff if the power outage lasts for more than 24 hours. Schröder and Kuckshinrichs mentioned that power deficits because of outages can be reduced or avoided by having other power sources (such as batteries and backup generators).…”

“…However, we do believe that the nonlinear shape of this function is generally representative of how discomfort is related to power consumption deficits to model scenarios widely reported. [28][29][30] Communities are assumed to be dispersed across a varied geography such that some communities may sometimes have surplus power generation (have more available power than their consumer demand levels require) due to good wind or sun, while, at the same time, others may face deficits and thereby suffer discomfort. The idea of coalition formation among the communities is to help communities that suffer from extreme discomfort by receiving support from those that have a much smaller level of discomfort.…”