Estimating Nucleolus for Fair Profit Allocation in Distributed Energy Network

This paper presents a nucleolus application for analyzing the fair profit allocation problem in the Distributed Energy Network (DEN) which combines on-site energy generators with heating/electricity interchange. In particular, the structure of the cooperative game and the concept of fairness behind it have been focused. Two linear programming algorithms with and without duality approach have been employed for analysis. As an illustrative example, the method is applied to a local area containing three buildings located in Shanghai, China.