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High penetration of distributed energy resources (DERs) motivates coordination mechanisms that reconcile individually preferred operation with mutual-interest performance in microgrids. Achieving mutual-interest objectives remains challenging due to the need for fair treatment of network-related responsibility. One of the most crucial mutual-interests of the power grids is network loss. Hence, proposing effective mechanisms that encourage loss reduction, and explicit representation of heterogeneous owner preferences in a fair manner is of vital importance. This paper develops a comfort-based market-clearing framework in which each DER owner is characterized by a monetary comfort value (/MWh) that quantifies how strongly the owner weights the mutual-interest objective (network loss minimization) relative to their preferred operating schedule, while ensuring that all participants’ comfort preferences are satisfied. The main novelty is twofold: (i) embedding owner-specific comfort into the loss-related payment component so that loss responsibility becomes preference-aware across DERs, and (ii) solving the resulting comfort-based, network-constrained market-clearing problem in a decentralized manner to preserve privacy and enable scalability. Simulations on the IEEE 30-bus distribution test system demonstrate that the proposed framework reduces total network losses and improves voltage profiles, and illustrates how comfort values tune the trade-off between mutual-interest performance and individual operating preferences.
Zamani et al. (Tue,) studied this question.