Profit allocation of independent power producers based on cooperative Game theory

N. X. Jia, R. Yokoyama

    Research output: Contribution to journalArticle

    39 Citations (Scopus)

    Abstract

    With the development of deregulation, the retail market is being formed. The independent power producers (IPPs) can contact the customers and sell electric power to them directly to obtain the profits because IPPs can provide electricity at cheaper prices to the customers than the utilities can. If IPP can obtain further more profit through collaborating with other ones in some coalition, it will prefer to collaborate to form this coalition rather than participating individually. In coalition, also the problem of how to allocate profit rationally for each IPP should also be solved. In this paper, we discuss the cooperation of IPPs in retail market and give a formulation about the calculation of IPPs profits. After that, based on Game theory, we propose a scheme to decide the profit allocation of each IPP in the coalitions rationally and impartially.

    Original languageEnglish
    Pages (from-to)633-641
    Number of pages9
    JournalInternational Journal of Electrical Power and Energy System
    Volume25
    Issue number8
    DOIs
    Publication statusPublished - 2003 Oct

    Fingerprint

    Game theory
    Profitability
    Deregulation
    Electricity

    Keywords

    • Coalition
    • Core
    • Game theory
    • Independent power producer
    • Nucleolus
    • Retail market
    • Shapley value

    ASJC Scopus subject areas

    • Energy Engineering and Power Technology
    • Electrical and Electronic Engineering

    Cite this

    Profit allocation of independent power producers based on cooperative Game theory. / Jia, N. X.; Yokoyama, R.

    In: International Journal of Electrical Power and Energy System, Vol. 25, No. 8, 10.2003, p. 633-641.

    Research output: Contribution to journalArticle

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