Fairness in Power Flow Network Congestion Management with Outer Matching and Principal Notions of Fair Division

The problem of network flow congestion occurring in power networks is increasing in severity. Especially in low-voltage networks this is a novel development. The congestion is caused for a large part by distributed and renewable energy sources introducing a complex blend of prosumers to the network. Since congestion management solutions may require individual prosumers to alter their prosumption, the concept of fairness has become a crucial topic of attention. This paper presents a concept of fairness for low-voltage networks that prioritizes local, outer matching and allocates grid access through fair division of available capacity. Specifically, this paper discusses three distinct principal notions of fair division; proportional, egalitarian, and nondiscriminatory division. In addition, this paper devises an efficient algorithmic mechanism that computes such fair allocations in limited computational time, and proves that only egalitarian division results in incentive compatibility of the mechanism.