Transmission expansion cost allocation based on cooperative game theory for congestion relief

In conventional power systems, upstream and downstream of power were distinct. However, due to the competition, power injection and sink can appear at unexpected locations, and cost sharing for such a new power system configuration must be considered. This paper proposes a scheme for transmission expansion cost allocation among electric market participants by using Core and Nucleolus concepts of game theory, which are developed particularly for the transmission users. A solution of the n-person cooperative game is adopted to distribute the line transmission expansion cost among the players. Congestion is assumed to be the transmission constraint, and expansion of transmission line is expected to relieve transmission congestion. A case study is illustrated to demonstrate the proposed method. (C) 2004 Elsevier Ltd. All rights reserved.