A novel nucleolus allocation of fixed transmission cost for various transaction modes

A novel nucleolus allocation of fixed transmission cost for various transaction modes is presented in this paper. It is based on newly proposed definition and method of the equivalent transformation of bilateral transactions into pool ones. A nucleolus model for allocating fixed transmission cost is established after all bilateral transactions changed into pool ones. The nucleolus resolution is then taken as the allocation results of the fixed transmission cost to both pool and equivalent pool transactions according to cooperative game and economic theories. In turn, the load and generator(s) involved in a transaction will further share half of the fixed transmission cost allocated to the transaction, respectively. Each generator will share the fixed transmission cost in proportion to their contribution to the load of the transaction. Simulation results of IEEE 14-bus system show that the proposed method is effective.