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Power Vectors to identify coalition partners in Game Theory controlled electricity markets

Modeling the transmission sector of electricity markets is a challenge, due to issues like violation of network operating limits, information asymmetry and conflict of incentives. In this paper we address all these concerns via an innovative method of amalgamating the Discos into coalitions so as to cause counter-flows in lines. The complexities of transmission operation are thus modeled in a Cooperative Game Theory environment. An intuitive method based on graph theory is then proposed to identify coalition partners among Discos who should rationally cooperate, to incur the minimum overall Transmission Service Charge. The technique is illustrated using a 24 bus real power system.