Transmission Usage and Cost Allocation Using Shapley Value and Tracing Method: A Comparison

In the deregulated power system, transmission pricing has become a very important task because it is necessary to develop an efficient, feasible and reliable pricing scheme that can generate the useful economic signals to network users such as generating companies, transmission companies, distribution companies and customers. The objective of this paper is to compare transmission usage and cost allocation scheme to loads (and/or generators) based on Shapley value method and power flow tracing method. Modified Kirchhoff matrix is used for power flow tracing. A comparison is done between the both methods. A case study based on sample 6 bus power system is applied to check the feasibility and reliability of the proposed usage and cost allocation methodology.