Research on allocation of congestion cost in a pool based market

Under a deregulated environment, transmission congestion involves in system security and market efficiency. How to relieve congestion and allocate congestion cost reasonably is one of the important contents. In this paper, a method for congestion cost allocation in a pool based model is proposed. The congestion cost is firstly allocated to congested lines by Shapley-value; then the line costs are allocated to all market participants according to their utilization degree of congested lines. This method decomposes the allocation into two steps and computation speed for Shapley-value is improved greatly for the number of congested lines is far less than that of transactions. Furthermore the method makes the revenue collected from the transmission users be equal to the cost of relieving the congestion and its results provide fair, economic signals.