Incentivising ancillary service provision of prosumers via a generalised profit-sharing mechanism within microgrids

Prosumers have the potential to provide ancillary service to the grid via the coordination of microgrids. However, profits from such programs may not be fairly distributed, and customers without enough compensation will be discouraged from participating. This study proposes a profit-sharing mechanism based on the Nash bargaining solution, which is a joint stochastic optimisation model that simultaneously determines the microgrid's day-ahead power scheduling, ancillary service trading and revenue distribution. Results from a case study confirm that the method can improve overall benefits for the microgrid, and guarantee that all the relevant parties are properly incentivised.