5. Loss Allocation in Distribution Networks Based on AumannShapley
5. Loss Allocation in Distribution Networks Based on AumannShapley
Abstract—This paper outlines a procedure for loss allocation which correspond to energy that is supplied but is not measured
in both radial and meshed distribution networks with distributed in client installations (because of errors in the meters or acts of
generation that could be regulated in various ways. The method electricity fraud).
is analytically developed based on the theory of electrical circuits
combined with game theory based on Aumann–Shapley, which Several publications in the scientific community propose
guarantees both the electrical principles and the fair axioms of measures for reducing the total values of losses [3], such as
game theory. The proposed method obtains unitary participa- controlling the tap position of substation transformers or using
tion coefficients for each network user based on the currents power inverters for the regulation of reactive power.
demanded/injected by each user and the network topology. The In general, the method for reducing losses is by applying
proposed allocation method based on Aumann–Shapley has been
compared with other traditional allocation methods, is adaptable to global control solutions at the Distribution System Operator
distribution networks, and shows great potential and ease of imple- (DSO) centers [4]. However, DSOs do not have any knowledge
mentation. Moreover, it can be applied to any kind of distribution about the users (consumers, generators, prosumers) who are
network (radial or meshed) with distributed energy resources. causing the increase in network losses. Knowing the locations
Index Terms—Distributed energy resources, distributed gener- of the customers who are responsible for the network losses will
ation, game theory, meshed networks. allow the DSO to apply specific local actions in those customer
installations in order to reduce the network losses. These actions
I. INTRODUCTION
can be based on Demand Response strategies [5].
NERGY losses in electrical networks can be determined
E based on the difference between the energy generated at
power stations and the energy measured at consumers’ installa-
The research proposal sets out in this article is focused on allo-
cating distribution network losses among network users, which
is not a trivial process, as indicated in [6] and [7]. This prob-
tions. In recent years, the difference between these values has lem has been studied extensively in the scientific literature and
increased, which entails an increase in electrical network losses. has been primarily applied to transmission networks, where the
According to data from the 2014 World Bank Database [1], it greatest interest lies in sharing the costs of the network among
can be observed that during the past decade, the average value of network users for economic purposes and electricity markets
world energy losses has been slowly decreasing (8.85% in 2000, [8]. Currently, loss allocation in distribution networks are usu-
8.47% in 2007 and 8.26% in 2014). These losses translate into ally considered through electricity tariffs. In many countries,
a loss of energy efficiency in electrical networks and result in tariff designs are based on volumetric charges where each cus-
an increase in electricity prices for end users, who are the ones tomer pays for the kilowatt-hours consumed without including
who must cover the network losses [2]. As such, it is imperative the costs that each user inflicts on the grid. In general, there is
to apply measures that will help reduce network losses, since no single accepted loss allocation method that can be applied
this improves the efficiency of electrical systems and the useful in different countries. Moreover, in the majority of countries,
life of electrical infrastructures and at the same time translates network losses are hidden within the fixed and variable elec-
into economic benefits for users. tricity fee. Very few countries, such as Hungary, include a loss
Losses can be classified as technical losses due to dissipation distribution component in their electricity bill [9].
of energy in lines and transformers and non-technical losses, Differences in the distribution tariff schemes can be es-
tablished even within one country. This is the case in Swe-
Manuscript received October 17, 2017; revised March 19, 2018 and May 22,
2018; accepted June 2, 2018. Date of publication June 6, 2018; date of cur- den, where each DSO is free to use the tariff design they
rent version October 18, 2018. Paper no. TPWRS-01577-2017. (Corresponding prefer as long as that methodology is nondiscriminatory and
author: Hortensia Amaris.) objective [10].
H. Amaris and M. Alonso are with the Department of Electrical Engineer-
ing, University Carlos III of Madrid, Madrid 28911, Spain (e-mail:, hortensia. It is not easy to compare the loss allocation methodologies
[email protected]; [email protected]). that are applied in different countries due to the great diversity
Y. P. Molina is with the Department of Electrical Engineering, Fed- of tariff schemes and the lack of transparency about the method-
eral University of Paraı́ba, João Pessoa 58051–900 Brazil (e-mail:, molina.
[email protected]). ology for calculating tariffs that each country uses [9]. However,
J. E. Luyo is with the Universidad Nacional de Ingenierı́a, Lima 15333, Perú some general conclusions can be highlighted:
(e-mail:,[email protected]). r The majority of the distribution tariff schemes are based
Color versions of one or more of the figures in this paper are available online
at http://ieeexplore.ieee.org. on the pro rata method, which is the simplest method but
Digital Object Identifier 10.1109/TPWRS.2018.2844740 does not consider the network loss caused by each user.
0885-8950 © 2018 IEEE. Personal use is permitted, but republication/redistribution requires IEEE permission.
See http://www.ieee.org/publications standards/publications/rights/index.html for more information.
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6656 IEEE TRANSACTIONS ON POWER SYSTEMS, VOL. 33, NO. 6, NOVEMBER 2018
r Distributed generation (DG) is not required to pay distri- apply the reconciliation and thus contains a factor of
bution charges, as is the case in Germany, the Netherlands, arbitrariness.
Norway, Belgium, Poland and Portugal. The exception oc- r It does not consider the contribution of reactive power in
curs in Great Britain, where embedded generators can be PV generation nodes.
allocated negative charges if they are providing a benefit The same authors proposed the method of Direct Loss Co-
to the network [10]. efficients (DLC) [15], the goal of which is to obtain a direct
r Losses due to reactive power flow through lines are not relationship between line losses, L, and the power injection,
considered in the network losses. avoiding the reconciliation process of the MLC method. This
The main difficulty for selecting the distribution allocation method proposes using a Taylor series expansion around the
method is that network losses are non-linear functions of the in- operation point to obtain the relation of losses, L, with nodal
jection power and power demand, which complicates the iden- voltages: module (U ) and phase (θ). Its problems include the
tification of the exact contribution of each network user to the computational complexity being high, as it is necessary to calcu-
total network losses. late the Hessian matrix, and the result of the allocation of losses
As introduced in [11], “fair” distribution is difficult to containing inherent imprecisions due to the truncation error of
achieve because almost all allocation methods entail a degree of the Taylor expansion.
arbitrariness. The method based on impedance matrices was originally pro-
The goal of a method for allocating losses is to share the posed for transmission networks by [16]. It is based on calcu-
total cost (losses) of the network among network users (both lating the losses as the sum of nodal network losses, know-
generators and consumers), in a fair way that reflects the real ing the admittance matrix of the circuit and the solution of
contribution of each user to the total network losses. Tradition- the load flow at a specific operation point. This method al-
ally, methods of loss allocation have been applied to transmis- locates 50% of the losses to generators and 50% to loads.
sion networks, covering a wide range of methodologies with However, this formulation cannot be applied in distribution
different levels of complexity. The simplest method is the pro networks.
rata method, where the cost is allocated to a client in propor- Several studies related to loss allocation in distribution net-
tion to their power connected to the network [12]. This method works have been published in recent years. Some offer high com-
presents the problem of unfair distribution because it does not putational complexity, which hinders their application to real-
take into account the locations of the network clients, and as a time situations [17]. Others are based on logarithmic schemes
consequence, it does not consider their contributions to the total [18], which provide different results for the same problem when
losses. they are compared to other allocation methods [19]. The fact that
For this reason, other methods based on circuits that consider different loss allocation methods provide different results for the
the locations of users in the transmission networks have been same network means that some methods are not providing an
proposed [13], [14]. However, the application of these methods accurate solution.
to the distribution networks is not immediate, as the role of the The Branch Current Decomposition (BCDLA) method was
swing/slang node is different in both networks. proposed by [19], and it is developed specifically for radial dis-
Another proposal is the method of Marginal Loss Coefficients tribution networks. This method only requires the information
(MLC), which is based on distributing total line losses among of the network topology and the solution of the load flow. How-
the units connected to the network according to coefficients that ever, this methodology cannot be applied to weakly meshed
consider the contribution of each unit (generator or consumer) to distribution networks.
the total network losses [15]. These coefficients (MLCs) express This article sets outs a method for loss allocation in distri-
the variation in the total active losses, L, due to the marginal bution networks based on game theory. More specifically, it is
variation in active power Pi and reactive power Qi in each based on Aumann-Shapley theory and circuit laws, offering an
network node i. However, the application of MLC produces analytical solution that is easy to implement and results in a fair
a nodal distribution loss that is approximately double that of share among participants, such as: consumers, prosumers, Dis-
the total network losses. As such, it is necessary to apply a tributed Energy Resources (DER). These two aspects allow the
reconciliation factor so that the total allocation loss to all users loss allocation proposal to be applied in distribution networks
equals the total network loss. (radial or meshed) where the real-time operation is needed.
The original proposal by [15] was intended for transmission The main contributions of the proposed method are as follows:
networks, in which 50% of the total losses were allocated to r The proposal of a new formula for allocating losses among
the swing node. The main problems of applying this method to participants (consumers, prosumers, DGs and DER) based
distribution networks are the following: on Aumann-Shapley in the distribution networks. The re-
r In distribution networks, the lines are short, with a high sult is an analytical solution that is easy to implement in
R/X ratio, so the Newton-Raphson load flow solution distribution networks (radial and meshed), offering low
methods might not converge. complexity.
r The computational complexity is high, as it is necessary to r It considers the real and imaginary components of the cur-
operate with the Jacobian matrix of the load flow. rent injections, so it identifies and quantifies the individual
r The resulting allocation does not correspond to a di- contribution of each user in terms of active and reactive
rect result of the formulation because it is necessary to power losses. This offers the advantage of differentiating
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AMARIS et al.: LOSS ALLOCATION IN DISTRIBUTION NETWORKS BASED ON AUMANN–SHAPLEY 6657
the participation of the DER that is operating in voltage The Shapley value is defined by:
control mode from another that works in power control
(|S| − 1)! (n − |S|)!
mode. Φi (v) = [v (S) − v (S − {i})]
r Losses allocated to DER and loads are independent, even n!
S,i∈S
when they are in the same bus. (1)
r It considers circuit laws and at the same time has desirable where:
characteristics in terms of economic coherence, because r S: Coalition, defined as the group of agents that unite to
it is based on circuit laws in combination with Aumann- obtain greater benefits than they would have if they went
Shapley. alone
r The methodology offers consistency with different load r |S|: the number of elements of coalition S
levels, simultaneously allowing great accuracy and fair r v(S): value of the coalition
billing to the different types of users connected to the r i: player i-th
distribution network, such as consumers, prosumers and r n: number of players
DER. Thus, the Shapley value of a player is defined as the av-
erage value of the allocations in all possible orders of player
II. METHODS BASED ON GAME THEORY incorporation in the coalitions [23].
The problem of allocating losses among network users can
be considered a cooperative game, which consists of sharing B. Methods of Loss Allocation by Aumann–Shapley
total network losses among a group of agents that either reduce Robert J. Aumann and Lloyd Shapley proposed the Aumann-
or cause them. The goal of the organization is to find an ef- Shapley method to solve the problem of cost allocation by ad-
ficient and fair allocation procedure, that is, with none of the dressing smaller units of the same participant [24]. The idea of
participants favored at the expense of others and without any- allocation by the Aumann-Shapley method consists of dividing
one coming out of it harmed. Cooperative game theory has been the contribution of each player into infinitesimal parts. The num-
applied to loss allocation in transmission networks [20]. To do ber of permutations increases, so applying the previous Shapley
this, generators, consumers and, in general, users of the electri- method, [25], would complicate it.
cal network are modeled as rational agents or players interested However, working with incremental, infinitesimal units
in forming groups and coalitions to obtain the maximum bene- shows that it is possible to obtain a closed, direct solution
fit in the final result. The solution provided by game theory is without having to perform any permutation of players in the
fair, efficient and stable [21]. Within this discipline, the most coalitions.
used methods are based on the Shapley value and the Aumann- Now, the incremental cost of an infinitesimal agent can be
Shapley method, described below. approximated to its marginal cost. Furthermore, the number of
permutations allows for the assumption that all of them have the
A. Methods of Loss Allocation Based on the Shapley Value same uniform probability of appearing, respecting the propor-
The Shapley value method finds an expected marginal con- tion of the size of the agents.
tribution to each player in the game with respect to a uniform The Aumann-Shapley solution [26] is defined in the following
distribution on the set of all permutations in the entry order of equation:
players to analyze all possible combinations in the game. The 1
∂SL O S S (λI)
cost, the profit, the benefits or the participation of each agent πk = dλ (2)
is calculated when it is the first, second, third and so on. The 0 ∂Ik
average value of the incremental costs calculated in each permu- where SL O S S is the complex electrical losses, Ik is the injection
tation determines the cost that corresponds to each agent. Thus, current at node k, πk represents the unitary Aumann-Shapley
the influence of the player entry order on the cost allocation is participation of element k, and λ is the integration variable,
eliminated [22]. which ranges from 0-1. The losses associated with this agent
The Shapley value can be interpreted as being the average are defined by:
value of the incremental costs of including the agent. It consid-
ers all sub-coalitions that do not contain this particular agent, Lk = Ik πk (3)
including the empty sub-coalition. Assuming that the probabil-
ities of the occurrences of sub-coalitions of several sizes are the where Lk is the allocation of losses to agent k.
same, the allocation is formally defined through the analytical It can be noted that Aumann-Shapley calculates the average
expression (1). value of each player’s incremental cost when it grows uniformly
The Shapley value is based on the concepts of fairness and from zero to its current value. The parameters vary constantly in
efficiency [21]: the interval [0,1], so the same proportion of division is applied
r Fairness: Each player must receive an allocation according in all the agents.
to their global contribution to the game. The Aumann-Shapley solution is fair and economically effi-
r Efficiency: The sum of the distribution of losses among the cient since it uses information about marginal costs and fulfills
participants must coincide with total network losses. the following axioms of game theory:
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6658 IEEE TRANSACTIONS ON POWER SYSTEMS, VOL. 33, NO. 6, NOVEMBER 2018
r Symmetry: two players that have the same contribution in where the voltages can be referred to the swing node,
the total network losses receive the same unitary partici- obtaining:
pation.
r Efficiency: The sum of all losses allocated to each individ-
N
Ii = Y(i,j ) (Uj − U1 ) (9)
ual player coincides with the total network losses.
r Additivity: The sum of the losses allocated to a player that j =2
decides to play two games separately is equal to the loss Solving the voltage vector Ui , i ∈ {2, . . . , N }, the following
allocated to this player when both games are played at the expression is obtained:
same time.
N
r Monotonicity: If network losses increase/diminish, losses Ui = U1 + Z(i,j ) Ij (10)
allocated to players increase/diminish. j =2
Several researchers have used Aumann-Shapley for cost dis-
where matrix Z represents the impedance matrix of the cir-
tribution in transmission networks [22], [27], sharing 50% of
cuit without including node 1. Keep in mind that Z does not
the total network losses among the slack bus and generators and
correspond to Z-bus [16], so it can be applied to any distribution
the other 50% among consumers. In distribution networks, this
network, avoiding the problem of the inversion of the singular
formulation is not acceptable because the slack node in these
admittance matrix.
networks is the connection point to the grid and consequently
has a loss allocation that is assumed to be zero.
A. Loss Allocation Due to the Real Component of the Current
The method proposed in this article solves the problem of
loss allocation in distribution networks via Aumann-Shapley, This section explains the allocation of losses (active, reactive)
identifying the individual participation of the power components among participants who are connected to distribution network
(active and reactive) of the loads and DER in each node and nodes k ∈ {2, . . . , N }. The distribution will be done consider-
each branch of the network, considering each component as an ing the nodal injection currents, expressed in Cartesian compo-
independent agent. Moreover, the properties of the Aumann- nents, that correspond to the consumption/generation by agents
Shapley method guarantee equitable allocations. connected to node k.
The unitary participation (2) of the active component of the
III. LOSS ALLOCATION AMONG PARTICIPANTS nodal current in bus k is:
1
Complex power losses, SL O S S (active, reactive) of a network ∂SL O S S (λI)
re
πloss,k = dλ (11)
with N nodes can be obtained from the following equation: 0 ∂Ikr e
N On the basis of (7), it can be expressed as:
SL O S S = Ui Ii∗ (4) 1 N
∂
∗
i=1 πloss,k =
re
re (Ui − U1 ) (λIi ) dλ (12)
0 ∂Ik
where Ui is the voltage in the i-th node and the injection i=2
current to the node is Ii . Taking node 1 as the slack/swing node Keeping in mind (10) and decomposing the nodal current
and the voltage reference, (4) can be expressed as shown in the at node k in its real and imaginary components, the partial
following equation: derivatives of the voltage with respect to the current can be
obtained as:
N
⎛ ⎞
SL O S S = U1 I1∗ + Ui Ii∗ (5) N
∂Uk ∂ ⎝
i=2 = U1 + Z(i,j ) Ij ⎠ = Z(k ,i) (13)
∂Ikr e ∂Ikr e j =2
considering that the nodal current I1 is related to the nodal
currents {2, . . . , N }, as follows: Substituting in (12):
N 1
N
I1 = − Ii (6) re
πloss,k = 2 Z(j,k ) λIjr e dλ (14)
i=2 0 j =2
The nodal injection current can be calculated from the nodal Finally, the total losses (3) due to the active component of the
voltages and the network admittance matrix: nodal current k can be calculated by the following expression:
N
N
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AMARIS et al.: LOSS ALLOCATION IN DISTRIBUTION NETWORKS BASED ON AUMANN–SHAPLEY 6659
At those network nodes where both loads and generators are Consequently, complex power losses associated with branch
connected, it will be necessary to distribute the loss allocated to l (26) can be expressed according to the nodal currents:
the node among the different agents that are connected to it. ⎛ ⎞⎛ ⎞∗
Considering that two agents in node k are connected (load
N
N
Sloss,l = zl ⎝ α(l,j ) Ij ⎠ ⎝ α(l,j ) Ij ⎠ (28)
and generation), it can be said that SL k is the demand for the
j =2 j =2
load connected at node k and that SG k is the power of the
DG unit located at the same node (see Fig. 1). The resulting
A. Branch Loss Allocation Due to the Real Component of
complex power injection at node k will be Sk = Pk + jQk and
Nodal Currents
corresponds to the sum of the power demanded by the load and
the power injected by the DG source. The nodal injection current The active unitary participation associated with branch l due
Ik will be the sum of the injection current due to the generation to the nodal current in bus k is expressed as:
and the load as: 1
∂SL O S S (λI)
πloss,l,k =
re
dλ (29)
Ik = IG k + IL k (22) 0 ∂Ikr e
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6660 IEEE TRANSACTIONS ON POWER SYSTEMS, VOL. 33, NO. 6, NOVEMBER 2018
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AMARIS et al.: LOSS ALLOCATION IN DISTRIBUTION NETWORKS BASED ON AUMANN–SHAPLEY 6661
B. Assumptions
The main assumptions considered are the following:
r The active and reactive currents of users independently
participate in the allocation of losses.
r Distribution network losses are allocated among network
participants (customers, prosumers, DER units).
r Loss allocations at nodes with load and generation will be Fig. 2. Four-node network with generation and three loads.
considered different agents.
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6662 IEEE TRANSACTIONS ON POWER SYSTEMS, VOL. 33, NO. 6, NOVEMBER 2018
Fig. 3. Branch losses case a: radial network, (solid) nodal active current Fig. 5. Branch losses case c: meshed network, (solid) nodal active current
contribution, (hatched) nodal reactive current contribution. contribution, (hatched) nodal reactive current contribution.
TABLE I
NODAL LOSS ALLOCATION [kW]
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AMARIS et al.: LOSS ALLOCATION IN DISTRIBUTION NETWORKS BASED ON AUMANN–SHAPLEY 6663
TABLE III
IEEE-33 TIE-LINES
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6664 IEEE TRANSACTIONS ON POWER SYSTEMS, VOL. 33, NO. 6, NOVEMBER 2018
TABLE IV
IEEE-33 MESHED DISTRIBUTION NETWORK LOSS ALLOCATION
Fig. 7. Loss allocation for different load levels (IEEE-33 meshed distribution
network with DER).
TABLE V
NETWORK LOSSES FOR DIFFERENT LOAD LEVELS
are assigned the same proportion of losses for each load and
generation percentage. This last case shows the consistency of
the proposed formulation for different load levels.
5) Discussion of Results: From previous results, the follow-
ing conclusions can be inferred:
r The solution provided by the proposed Aumann-Shapley
methodology offers the characteristics of fairness, effi-
ciency, and stability, which are required for the correct
allocation of distribution losses among participants. More-
over, for radial distribution networks, the proposal solution
behaves similarly to BCDLA [19], which confirms that the
proposal provides accurate loss allocation solutions.
r It is demonstrated that the proposed formulation can be
located at bus 31 reduces network losses for all situations from
applied straightforwardly to meshed distribution networks,
one loop to five loops. In contrast, DG located at bus 6 increases
which is an important advantage compared to the BCDLA
losses, and consequently, its loss allocation is always positive.
methodology [19]. The BCDLA methodology has been
According to the customers, it can be noted that customers
specifically formulated for radial distribution networks and
near the D-STATCOM and DG located at bus 25 are allocated
cannot be applied to meshed distribution networks.
negative losses according to the increased number of loops, r Furthermore, the proposed loss allocation methodology
which means that their demand is reducing network losses.
satisfies the axioms of fairness and consistency for differ-
4) Case D: In this situation, the topology that has been con-
ent loads levels. It has been shown that every single agent
sidered corresponds to the totally meshed network (five closed
(customer, DER) is responsible for the network losses pro-
tie-lines) with the D-STATCOM located at node 31 and two
portionally to the load level.
DGs connected at nodes 6 and 21. The load and generation are r It has been shown that the proposed formulation can be ap-
varied from 10% to 100% of the data used in case B. A similar
plied to distribution networks (radial and meshed) with DG
load demand variation is performed in [32]. Fig. 7 shows the
and reactive power compensators such as D-STATCOM
loss allocation at the nodes located in the main feeder (from
without requiring any modification or assumption in the
node 9 to node 18) for different load and generation percent-
formulation.
ages (referred in case B) and total network losses for each load
variation is shown in Table V.
VII. CONCLUSION
It is important to emphasize that for different load levels, the
variation in losses assigned to every single user is the same. This paper demonstrates the potential of the Aumann-Shapley
This means that all participants (loads, DG and D-STATCOM) game theory methodology to allocate losses among network
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AMARIS et al.: LOSS ALLOCATION IN DISTRIBUTION NETWORKS BASED ON AUMANN–SHAPLEY 6665
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6666 IEEE TRANSACTIONS ON POWER SYSTEMS, VOL. 33, NO. 6, NOVEMBER 2018
Hortensia Amaris (M’97) received the M.Sc. and Ph.D. degrees in electrical Monica Alonso (M’11) received the M.Sc. degree in electrical engineering and
engineering from the Polytechnic University of Madrid, Madrid, Spain, in 1992 the Ph.D. degree in electrical engineering, electronics, and automation from the
and 1995, respectively. In 1996, she joined the Department of Electrical En- Universidad Carlos III de Madrid, Madrid, Spain, in 2003 and 2010, respectively.
gineering, University Carlos III of Madrid, Madrid, where she is currently a She is currently a Lecturer with the Department of Electrical Engineering,
Professor. She has been involved in several international research projects re- Universidad Carlos III de Madrid. Her research interests include distributed
lated to renewable energy sources, optimization, and control of smart grids. Her energy resources, smart grids, power quality, and power protection.
research interests include control from renewable energy sources, optimization
of power systems, and smart grids.
Yuri P. Molina was born in 1978. He received the Diploma in electrical en-
gineering from the National University of Engineering, Lima, Peru, in 2003,
the M.Sc. degree in power systems from the Federal University of Maranhão, Jaime E. Luyo received the M.Sc. degree in electrical engineering from the
São Luı́s, Brazil, in 2005, and the Ph.D. degree in electrical engineering from Rensselaer Polytechnic Institute, Troy, NY, USA, and the Ph.D. degree in eco-
the Catholic University of Rio de Janeiro, Rio de Janeiro, Brazil, in 2009. He nomics (applied to energy and public services regulation) from the Universidad
joined the Department of Electrical Engineering, Federal University of Paraı́ba, Nacional Mayor de San Marcos, Lima, Peru. He is currently the Director of the
João Pessoa, Brazil, in 2012. His research interests include control, operations, Ph.D. Energy Program with the Universidad Nacional de Ingenierı́a, Lima. His
planning, and economics of electric energy systems, as well as the development research interests include energy planning and policy, electric power systems,
of new electricity markets. sustainable energy development, energy economics, and energy markets.
Authorized licensed use limited to: INDIAN INSTITUTE OF TECHNOLOGY KANPUR. Downloaded on June 28,2022 at 05:43:08 UTC from IEEE Xplore. Restrictions apply.