Dynamic cooperative electricity exchange in a power pool

An approach to the design of the transaction agreement in an electric power pool is proposed. The electricity exchange takes place over a fixed time interval in a stochastic environment. The incentive for the electricity exchanges is a disparity in the time patterns of the marginal operating costs between the utilities. Electricity produced at the different periods is used as the medium of exchange and no monetary payment between the utilities takes place. The exchange policy is chosen so that the savings are distributed to the participants in an equitable manner. The contract definition problem is approached from the point of view of cooperative game theory. Because of the inherent uncertainty, the contract is adjusted at each period so that fair division of the cost saving can be obtained