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Aggregating statistically diverse renewable power producers (RPPs) is aneffective way to reduce the uncertainty of the RPPs. The key question inaggregation of RPPs is how to allocate payoffs among the RPPs. In this paper, apayoff allocation mechanism (PAM) with a simple closed-form expression isproposed: It achieves stability (in the core) and fairness both in the"ex-post" sense, i.e., for all possible realizations of renewable powergeneration. Furthermore, this PAM can in fact be derived from the competitiveequilibrium in a market. The proposed PAM is evaluated in a simulation studywith ten wind power producers in the PJM interconnection.

Ex-post Stable and Fair Payoff Allocation for Renewable Energy Aggregation