Transmission Cost Allocation based on Cooperative Game Theory

The open access to the transmission system and the methods of transmission cost allocation are the key points that allow free competition in deregulated electric markets. all existing allocation methods have advantages and disadvantages that depend on the characteristics of the power system and the price structure of the market. the comparison of the cost allocation methods has been the aim of many studies in order to improve them. under the deregulated environment, the cost needs to be allocated to the loads as well as generators fairly and unbiased so as to provide a locational signal to both types of players for optimal setting. this paper proposes game theoretic models based on the shapley value approaches for transmission cost allocation problems under the deregulated environment. the obtained results are compared with those from the usually adopted methodologies to defend easy implementation and effectiveness of the proposed methodologies.