2004•Journal of North China Electric Power UniversityRequires access

Application of cooperative game in allocation of transmission cost

Zhongfu Tan

Abstract

With the setup of the grid company in china, transmission will be separated from generation. So allocation of the transmission cost becomes a focus issue. This paper introduces the Shapley Value of cooperative game to allocate the transmission cost. This method overcomes some drawbacks of the traditional methods and encourages the efficient use of grid. It can completely recover the transmission cost. An example is given to show its rationality and feasibility.

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Key concepts: Shapley value, Cost allocation, Cooperative game theory, Computer science, Transmission (telecommunications), Grid, Game theory, Rationality