Cost allocation of DG embedded distribution system by game theoretic models

The thrust on renewable power generation is enthusing a large number of distributed generators to join the distribution system at varied locations. With multiple players in the emerging restructured market, regulators require a robust model for the complex problem of network cost allocation. In such an environment, Cooperative Game Theory provides a stable cost allocation model for network usage to handle the new market situations. The paper provides a game theoretic model that allocates the cost of DG embedded distribution network based on Nucleolus and Shapley Value approaches. Consistent results obtained for distribution networks qualify the application of game theoretic approaches. Comparisons with the results from MW-Mile model assert their relevance and easy implementation.