Generation cost allocation-a methodology based on optimal power flow and cooperative game theory

This work proposes a methodology to allocate the active power generation cost among the electric energy consumers of a power pool. Although the marginal costs of the active and reactive power injections, obtained as a byproduct of the optimal power flow (OPF) solution, have been used to assign the share of the generation cost to each load, these factors do not assure a fair division of the cost among the consumers. The approach proposed in this paper combines the results of the non-linear OPF with the cooperative game theory. The marginal costs obtained from the OPF solution are integrated over a load interval to produce the so-called Aumann-Shapley values, which are used as nodal participation factors of the load buses for the generation cost. Power systems of different size, including a real size power network, are used to illustrate the application of the proposed methodology