applications of cooperative game theory in power system allocation problems

This paper proposes a variant of cooperative game is derived and it has been proved that to determine the analytical solution to determine the nucleolus. The power generations or loads associated with the market are modeled as individual current injections based on a real-time solved AC power flow solution. Each load can be modeled as a current injection or equivalent constant impedance depending on whether it is required to be responsible for the system loss. Each current injection is then treated as an individual player of the transmission loss allocation game. The concept of Shapley value adopted from cooperative game theory is utilized to deal with the fairness of loss allocation. It has been applied to a 14-bus system and the results are discuses.