The allocation of the system losses to suppliers and consumers is a challenging issue for the restructured electricity business. Meaningful loss allocation techniques have to be adopted to set up appropriate economic penalties or rewards. The allocation factors should depend on size, location, and time evolution of the resources connected to the system. In the presence of distributed generation, the variety of the power flows in distribution systems calls for adopting mechanisms able to discriminate among the contributions that increase or reduce the total losses. Some loss allocation techniques already developed in the literature have shown consistent behavior. However, their application requires computing a set of additional quantities with respect to those provided by the distribution system power flow solved with the backward/forward sweep approach. This paper presents a new circuit-based loss allocation technique, based on the decomposition of the branch currents, specifically developed for radial distribution systems with distributed generation. The proposed technique is simple and effective and is only based on the information provided by the network data and by the power flow solution. Examples of application are shown to confirm its effectiveness.

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