Use of cooperative game theory concepts for loss allocation in multiple transaction electricity markets

Abstract EN

The paper presents a cooperative game theory application for analyzing the allocation of the transactional transmission losses in Multiple-Transaction Electricity Markets.

This paper identifies a set of approaches documented in literature in areas of application of Cooperative Game Theory (CGT) and reviews their applicability to allocations of losses in Multi-Transaction Electricity Markets.

The allocation methods can be broadly classified into three categories, i.e.

Classical, Existing, and Variants of Nucleolus.

In this paper, two points are focused during the study i.e.

the structure of the game and the concept of fairness behind it.

The allocation concept of these methods is systematically analyzed, compared and calculations have been performed on standard IEEE 14 and IEEE 118 bus systems.

The Proportional Nucleolus is shown to be among the most plausible concept.

A power flow (PF) procedure is applied to calculate power losses for each transaction.

Various methods available in the literature of CGT applied to loss allocation in the Multi-Transaction are also compared with the convictional approach and the results are tabulated accordingly.