Pricing mechanism based on losses using grid topology

Victor M.J.J. Reijnders, Marco E.T. Gerards, Johann L. Hurink

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    2 Citations (Scopus)


    The currently used pricing mechanisms for the network costs in the domestic sector do not give incentives to lower the stress on the grid. In this paper, we present a novel pricing mechanism for the grid costs based on the losses caused by the transport of energy in the low voltage (LV) grid. The mechanism is based on the Shapley value. In a first step, we derive the Shapley value based on the given locations of the households in the grid. As the locations influence the prices heavily, we present a second mechanism by averaging the Shapley value over all permutations of households. This leads to a contribution to the costs as if the household is on an average location. We show that this value can be calculated efficiently by an explicit expression if the households are connected to a single cable. Furthermore, we present an approximation for this value which may be useful for extensions to LV grids of a different topology.

    Original languageEnglish
    Title of host publication2019 IEEE Milan PowerTech
    ISBN (Electronic)9781538647226
    Publication statusPublished - 1 Jun 2019
    Event13th IEEE Milan PowerTech 2019 - Milan, Italy
    Duration: 23 Jun 201927 Jun 2019
    Conference number: 13

    Publication series

    Name2019 IEEE Milan PowerTech, PowerTech 2019


    Conference13th IEEE Milan PowerTech 2019
    Internet address

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