Abstract-This paper critically assesses several loss allocation methods based on the type of competition each method promotes. This understanding assists in determining which method will promote more efficient network operations when implemented in deregulated electricity industries. The methods addressed in this paper include the pro rata
Abstract-The similarity between the different loss allocations methods varies considerably, depending upon the system to which the methods are applied. This is primarily a result of the manner in which the different allocation methods address the impact of network structure. Further work is still required to determine which method encourages better system operation.
This paper introduces a new power flow tracing and subsequently loss allocation method based on loop analysis. The knowledge of the loop paths aids in the visualisation of presumed transfer of power throughout the transmission network. A formalised process of loop identification, based on graph theory, is introduced to ensure that each loop contains at least one active source. This way, the system losses can be readily and justifiably allocated to the active sources in the network without involving any approximations. The proposed method is applied to both a small test system and the IEEE 14-bus test system, demonstrating the features and limitations of the proposed methodology.
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