Title :
An Aumann-Shapley Approach to Allocate Transmission Service Cost Among Network Users in Electricity Markets
Author :
Junqueira, Max ; Costa, Luiz Carlos da, Jr. ; Barroso, Luiz Augusto ; Oliveira, Gerson C. ; Thomé, Luiz Mauricio ; Pereira, Mario Veiga
Author_Institution :
PSR, Rio de Janeiro
Abstract :
This work presents a new methodology for the allocation of transmission service cost among network users in energy markets. The proposed method is based on an optimization/game-theoretic framework (Aumann-Shapley) that retains the desirable properties of other existing methodologies such as the Average Participations Factors (APF) and Long Run Marginal Costs (LRMC). The approach is shown to be computationally feasible and presents desirable characteristics in terms of economic coherence and isonomy. Computational results are presented for the Brazilian power system and compared with those obtained by three other methodologies: LRMC, APF, and the current method adopted in Brazil.
Keywords :
power markets; power system economics; power system management; Aumann Shapley approach; average participations factors; economic coherence; electricity markets; long run marginal costs; network users; transmission service cost; Cost function; Electricity supply industry; Environmental economics; Investments; Optimization methods; Power generation; Power generation economics; Power system economics; Pricing; Signal generators; Aumann-Shapley pricing; cooperative game theory; transmission pricing; transmission service cost allocation;
Journal_Title :
Power Systems, IEEE Transactions on
DOI :
10.1109/TPWRS.2007.907133