A Cooperative Game Theory Approach for Usage and Reliability Margin Cost Allocation under Contingent Restructured Market

Abstract

Restructuring of Electricity supply industry introduced many issues such as transmission pricing, usage, loss and reliability margin (TRM) allocation. Many methodologies have been proposed to address these issues. In this paper authors propose a graph theory based combined methodology which involves modified Kirchhoff matrix for transmission usage and reliability margin allocation. For optimal usage allocation at base case cooperative game theory is used. Further, novel reliability indices are developed for optimal transmission usage and cost allocation under N-1 contingency condition. Full and partial recovery models of transmission cost allocation are also developed. First, the transmission usages are allocated to users for base case power flow by modified Kirchhoff matrix. For allocating transmission usage cost under contingency, line outage impact factor (LOIF) and line outage distribution factor (LODF) are calculated. Further these factors are modified and calculated at maximum loading condition of line. Hence these reliability indices are called line outage impact factor at maximum flow (LOIFM) and line outage distribution factor at maximum flow (LODFM). With the help of these indices maximum transmission usage cost is recovered from the users. For usage cost allocation under contingency condition Modified MW-mile approach is used. Results are shown for the sample 6 bus system and IEEE 14 bus system.