Allocation of Congestion Cost in a Pool Based Model Using Shapley Value

Transmission congestion involves in system security and market efficiency under a deregulated environment. How to eliminate congestion effectively and allocate congestion cost reasonably becomes one of the important contents. In this paper, a method for congestion cost allocation in a pool-based market is proposed. The congestion cost is firstly allocated to congested lines using Shapley-value; then the line costs are allocated to all market participants according to their utilization degree of congested lines. The proposed method decomposes the allocation into two steps and computation speed for Shapley-value is improved greatly for the number of congested lines is far less than that of transactions. The method provides fair, economic signals and makes the revenue collected from the transmission users be equal to the cost of relieving the congestion.