Reserve Allocation in Active Distribution Systems for Tertiary Frequency Regulation: A Coalitional Game Theory-based Approach

Abstract: This paper proposes a coalitional game theory-based approach for reserve optimization to enable DERs participate in tertiary frequency regulation. A two-stage approach is proposed to effectively and precisely allocate spinning reserve requirements from each DER in distribution systems. In the first stage, two types of characteristic functions: worthiness index (WI) and power loss reduction (PLR) of each coalition are computed. In the second stage, the equivalent Shapley values are computed based on the characteristic functions, which are used to determine distribution factors for reserve allocation among DERs.