Loss Allocation for Distribution Network Using τ-Value Game Theory Approach

Practical loss allocation algorithm for distribution networks should be fair and give positive economic signal to the market for improving overall efficiency of the system. In this paper, cooperative game theory approach is discussed to target loss allocation problem in distribution network in presence of Distributed Generators(DGS). The τ-value solution concept of cooperative games used to solve loss allocation problem in distribution network. The obtained results by proposed method have been compared with those by Shapley value method. Proposed loss allocation algorithm rewards participants which are responsible for improving system efficiency and penalizes the participant which are responsible for deteriorating system efficiency. Cross subsidy is reduced which gives a positive signal integration of DGs in the system. τ-value solution concept is consistent with other fairness parameters giving positive signal to market.