Allocation of transmission losses based on cooperative game theory and current injection models

This paper introduces a reasonable and fair approach to allocate the transmission losses under a pool-based electricity market. The approach adopts the concept of Shapley value from cooperative game theory and utilizes equivalent current-injected generation and constant-impedance load models based on a converged power flow solution. The method is useful to decide a fair tariff of transmission loss charge. A 6-bus power system is tested to demonstrate the proposed method.