Transmission Cost Allocation Based on Data Envelopment Analysis and Cooperative Game Method

Abstract Transmission cost allocation is a traditional but challenging problem in electric power industries. Many factors can affect the transmission cost allocation. But most traditional allocation methods focus on just one point. The Data Envelopment Analysis (DEA) approach has the characteristic of multi-criterion. It can overcome the drawbacks of traditional allocation methods. This paper combines the game theory and DEA approach to solve the problem of transmission cost allocation. In order to take various key points of power transmission into account, three criterions are proposed. These criterions reflect the effect of load demand, transmission line usage and marginal cost on transmission cost allocation. Nucleolus and Shapley value are used to solve the DEA game programming. For measuring the fairness of the transmission cost allocation methods, this paper proposes an algorithm to evaluate the satisfaction of users with the different allocation methods. The DEA game approach is applied to IEEE 14-bus system. The results which are compared with that of other three traditional allocation methods demonstrate the applicability of the proposed method.

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