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Marginal Pricing of Transmission Services Using Min-Max Fairness Policy

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Field Value
 
Title Marginal Pricing of Transmission Services Using Min-Max Fairness Policy
 
Creator RAO, MSS
SOMAN, SA
 
Subject COST ALLOCATION
WHEELING TRANSACTIONS
SYSTEM USAGE
MARKETS
USERS
Cooperative game theory
linear Programs
marginal participation method
min-max fairness
transmission systems
usage cost allocation
 
Description We consider the problem of allocating the cost of a transmission system among load and generator entities. It is a known instance of the classical cooperative game theoretic problem. To solve this problem is a formidable task, as we are dealing with a combinatorial game with transferable utilities. This is an NP hard problem. Therefore, it suffers from the curse of dimensionality. Marginal pricing is a pragmatic alternative to solve this problem since both Kirchhoff current law and voltage law are strictly adhered to. However, the generic complexity of cooperative game theoretic problems cannot be just wished away. It now manifests as the difficulty in choosing an economic slack bus, which may even be dispersed. We propose the application of min-max fairness policy to solve this problem and give an algorithm which will run in polynomial time. During network cost allocation, min-max fairness policy minimizes the maximum regret among participating entities at each step. Maximum regret is measured in terms of price, and lexicographic application of this principle leads to a fair and unique equilibrium price vector. Results on a large network demonstrate fairness as well as tractability of the proposed approach.
 
Publisher IEEE-INST ELECTRICAL ELECTRONICS ENGINEERS INC
 
Date 2016-01-15T09:35:08Z
2016-01-15T09:35:08Z
2015
 
Type Article
 
Identifier IEEE TRANSACTIONS ON POWER SYSTEMS, 30(2)573-584
0885-8950
1558-0679
http://dx.doi.org/10.1109/TPWRS.2014.2331424
http://dspace.library.iitb.ac.in/jspui/handle/100/18265
 
Language en