Loss Allocation Strategy Of Bilateral Transaction Electricity Market

This dissertation performs a research on loss allocation problem in bilateral-transactions electrical market model and describes an efficient scheme to allocate the transmission losses equitably among market participants (transactions) using Nested Cooperative Game structure in the game theory. We propose that the responsibility of loss involved in each transaction should be figured out according to transaction's contribution to the system loss, that is, the incremental loss when transaction is added into the system. Nested Cooperative Game structure in Game Theory is introduced into our allocation scheme to eliminate the arbitrariness of incremental losses caused by the nonlinearity of losses function. Some numerical results are used to compare our methods with those proposed in the literature and demonstrate the effectiveness of our method.