  Budget allocation for power system reliability improvement is considered
among the sophisticated problems because of its nonlinear nature. This
nonlinearity makes the problem intractable for large-scale power systems. This
paper compares two approaches for budget allocation for power system
reliability improvement. The first method is the traditional one, which suffers
from the non-convexity and nonlinearity. In the second approach, a linear
zero-sum mixed-strategy game is proposed where a limited budget is allocated
among the network elements based on the game variables along with an iterative
algorithm to find the solution. Both models are applied to the modified RTBS
system. The results show that while each strategy adopts a different tactic for
reliability improvement, both strategies improve the system reliability to the
same level for a given budget.
