A Shapley value approach for transmission usage cost allocation under contingent restructured market

Restructuring of Electricity supply industry introduced many issues such as transmission pricing, usage cost, loss cost and reliability margin (TRM) allocation. Many methods and algorithms have been developed to address these issues. In this paper authors propose a cooperative game theory based methodology for transmission usage cost allocation. For this purpose Shapley approach of cooperative game theory is used. Optimal usages are allocated at base case and under contingency condition by using cooperative game theory. Transmission usage cost is allocated under normal and N-1 contingency condition. Results are shown for the sample 6 bus system and IEEE 14 bus system.