Selection of Cost Allocation Methods for Power Grid Enterprises Based on Entropy Weight Method

Abstract

Abstract With the liberalization of the electricity trading market, market participants pay more attention to the fair and reasonable distribution of relevant costs. However, the traditional transmission and distribution cost allocation methods based on fixed costs have serious cross-subsidies. In this context, a variety of methods for amortizing transmission and distribution costs from different angles have emerged, but these methods generally have some shortcomings, such as excessive calculations. To select the optimal cost allocation method objectively and rationally, this paper uses the entropy weight method to evaluate different cost allocation methods based on four indicators: comprehensibility, application difficulty, load change reflection ability, and transmission stability. Studies have shown that the hybrid transmission and distribution cost allocation method combining the stamp method and the peak liability method is more reasonable and effective.