Optimal allocation of transmission fixed costs to electric vehicle charging stations and wind farms using an analytical method and structural decomposition

Renewable energies have found a suitable place in the electricity grid due to their non-pollution and cheapness. From the point of view of the grid operator, the allocation of costs should be appropriately allocated to producers and customers in competitive electricity markets. A fair allocation strategy can lead to more efficient use of current transmission lines while providing economic signals to guide future generation planning and load shedding. In this paper, first, using a powerful structural decomposition method, the optimal location of electric vehicle charging stations (EVCSs) and wind farms is determined from the flow aspect of grid lines. Then, the transmission fixed cost is assigned to each item placed in the network. The proposed method is implemented on the IEEE 24-bus network, and its results are analyzed. The fair allocation of transmission fixed costs prevents collusion, and the proposed method can be an effective tool for the network operator.