Proportional nucleolus game theory-based locational marginal price computation for loss and emission reduction in a radial distribution system

摘要

In this paper, a proportional nucleolus game theory (PNGT)-based iterative method has been presented to compute locational marginal price (LMP) at buses where distributed generation (DG) units were installed in a distribution network. Proportional nucleolus theory is one of the solution concepts for a cooperative game theory problem. The PNGT-based iterative method provides financial incentives in terms of LMP to DG owners as per their contribution in loss reduction and emission reduction at a particular loading on the distribution system.In this method, LMP values depend on the distribution company's decision maker's preference among loss reduction, emission reduction, and distribution company's additional benefit.This proposed PNGT-based iterative method has been implemented on a Taiwan power company's distribution network consisting of 84 buses with 15 DG units using MATLAB. The computed LMP values have operated the network based on decision-maker priority so as to enable fair competition among DG owners.