A Nucleolus-Based Profit Allocation Method for Determine Individual Power System Stabilizer´s Contribution to System Stability

The issue of pricing the services provided by power system stabilizers (PSS) to damp out low-frequency oscillations in large interconnected electrical power grids is proposed. Taking the dominant eigenvalue method for analytical tool to evaluate the increased transfer capability when PSS-control services are utilized, a method based on nucleolus in the cooperative game theory to determine the individual PSS services provider´s contribution to power systems stable operation, and allocate the profit obtained by total transaction level increment among all PSS services providers is presented. The calculation results show that the proposed method can achieve rational allocation, and have incentive effect on popularizing PSS application. These are helpful for the stable and economical operation of electricity markets.