Allocation of fixed transmission cost to wheeling transactions by cooperative game theory

Abstract

This paper describes a methodology to allocate the cost of transmission network facilities to wheeling transactions in decentralized power systems. The authors propose that the responsibility placed on transmission facilities involved in each transaction be according to the transmission usage pattern. Their proposal incorporates the MW-mile method and considers economies of scale of transmission network facilities. They also incorporate a nucleolus scheme in the cooperative game theory to deal with matters of conflict. The applicability of their method is demonstrated in a numerical example.