Nash Equilibrium of Transmission Grid Using Real-time Monitoring Systems

Transmission grid capability has an economic value, but this capability is not constant all of the time. Dynamic changes in transmission capability are due to cooling effects of wind speed and direction. This dynamic transmission capability results swinging economic value of the line and therefore whole grid. In a deregulated transmission network environment, the economic value of the line is important because it ensures fair competition and optimizes investments in transmission industry. Considering the dynamics of transmission capability for a financial transaction will improve the network efficiency by motivating market participants to take into account the true value of the transmission lines. The advanced technology of real time monitoring, which is required for such market structure, has been used by large number of utility companies around the world