Viewing Power flow in an Electricity Market as Confluence of Stable Multilateral Trades (original) (raw)

This paper contributes a new method to appraise the impact of trades in an electricity market within multilateral trade structures. We propose that the conventional power flow problem be redefined or re-interpreted as a consequence of a confluence of trades, coordinated by the Transmission Provider (TP). Though commerce of power is between end-users, impact is on the facilitator of competition, the grid. The TP prevents abuse of the network using Transmission Service Charges (TSC) modelled as a flexible financial instrument as per market engineering principles. Our scheme envisions formation of stable coalitions based on fruitful synthesis of separately evaluated trades. We finally illustrate our methodology with a 5 bus and 24 bus examples in a cooperative game theory (CGT) environment. .