Bargaining-Based Approach for Dynamic Operating Envelope Allocation in Distribution Networks

In this paper, we develop a novel bargaining-based approach for the allocation of Dynamic Operating Envelopes (DOEs) in distribution networks (DNs). Addressing challenges of voltage and line power flow overlimits resulting from reverse power flow, DOEs are allocated by Distribution System Operators (DSOs) to aggregators, imposing time-variant export power limits at various nodes. The proposed method integrates the upper and lower DOE constraints requested by aggregators into the DOE allocation model. Consequently, the DOEs assigned to aggregators adhere to their respective requirements, ensuring a more efficient network capacity allocation. As a result of the Nash Bargaining-based solution, the allocation of DOE is more fair. A test on a 4-bus system geometrically interprets the principle for our DOE allocation methods, and a 141-bus system test validates the effectiveness of the proposed DOE allocation method.