A Novel Shapley Solution for Power System Loss Allocation Under Hybrid Transaction Modes

The allocation of power system loss under hybrid transmission modes was investigated. First, a concept and method for converting a bilateral transaction into its two equivalents pool transactions were proposed. Then, a model based on Shapley value was designed to allocate the power system loss in the framework of equivalent pool transactions. The Shapley solution in cooperative game theory was employed to allocate the power system loss to each load pool transaction that includes the equivalent ones. The proposed method is applicable for electricity markets containing pool and bilateral transactions. It satisfies electric circuit laws and provides economic signals to users. The effectiveness of the proposed method is verified by the IEEE 5-bus test system.