Fair transmission loss allocation based on equivalent current injection and Shapley value

This paper proposes fair schemes for the transmission loss allocation under a pool-based electricity market. The power generations or loads associated with the market are modeled as individual current injections based on a real-time solved AC power flow solution. Each load can be modeled as a current injection or equivalent constant impedance depending on whether it is required to be responsible for the system loss. Each current injection is then treated as an individual player of the transmission loss allocation game. The concept of Shapley value adopted from cooperative game theory is utilized to deal with the fairness of loss allocation. One alternative approach with a normalization procedure is presented to speedup the computation. Numerical results are presented and discussed to demonstrate the applicability of the proposed approaches to a pool-based market