Fairness for distribution network operations and planning

2026-04-30

AI Summary

This study addresses the long-standing neglect of systematic integration of fairness principles in distribution network planning, which can exacerbate locational inequities among users and undermine both distributive justice and social cohesion. For the first time, it comprehensively incorporates multidimensional fairness criteria—spanning egalitarian to performance-oriented paradigms—into an optimization framework based on linear and nonlinear programming. The work systematically examines how alternative fairness norms affect stakeholders and resource allocation, revealing the mathematical complexity and applicability boundaries of various fairness metrics in distribution system optimization. Furthermore, it quantifies the efficiency loss incurred by enforcing fairness, commonly known as the Price of Fairness (PoF), thereby providing a rigorous theoretical and methodological foundation for transparent, consistent grid planning decisions that balance efficiency and equity.

Abstract

The incorporation of fairness into the distribution network (DN) planning and operation has become a key goal of recent studies. The cost of implementing fairness, denominated the price of fairness (PoF), covers the efficiency that is renounced for attaining social cohesion through fair outcomes. Locational disparity makes fairness schemes emerge to level the consumers playing field. However, fairness encompasses a range of notions. From egalitarian to merit-based criteria, various metrics are implemented as a tool for measuring equitable utility distribution. These have different mathematical complexities, from linear to non-linear programming cases, which affect their overall applicability. Hence, this study compiles the overarching fairness notions and metrics, reviewing how these affect stakeholders and the inherent mathematical optimisation in resource allocation problems. The aim is to support consistent and transparent planning and decision-making within DN operations.

Problem

• fairness
• distribution network
• price of fairness
• resource allocation
• equity metrics

Innovation

• fairness
• distribution network
• price of fairness
• resource allocation
• optimization