Managing interconnection of electricity generation, transmission and distribution: A dynamic collaborative solution

Abstract

This paper presents an analysis of interconnected electricity networks of providers in electricity generation, transmission, and distribution. Collaboration represents the best possibility of achieving a group optimal solution that enhances economic gains and stability of electricity supply. This paper developed a novel dynamic fair gain-sharing solution for interconnected electricity grid collaboration that fulfills the requirements of a sustainable scheme - individual rationality, group optimality, time consistency, and fair-sharing principle. This solution allows the derivation of a sustainable collaborative scheme in managing interconnected electricity grids which enhances economic gains and stability in electricity supplies. This is the first time that interconnected electricity grid network collaboration is analyzed with a fair gain-sharing principle, further theoretical development and real-life applications are expected.