Transmission Loss Allocation Based on Power Adjacency Matrix in Pool Electricity Markets

Allocation of transmission active losses through a novel power tracing‐based technique

“…slack bus) compensates this small change, the total active losses do not decrease. Therefore, similar to the technique that uses marginal coefficients to allocate losses and is evaluated in [28], the methods of the authors in [3,25] can also provide wrong economic signals for the loads. Moreover, since the flows of all incident lines of buses 2, 7, 13, 14, 18 and 19 enter these buses, active losses of all lines connected to each of these buses must be allocated to the load on that bus.…”

“…Owing to the non-linearity of loss expression, a unique and definite solution for loss allocation problem has not been addressed yet. Nevertheless, great efforts have been made so far to solve it by employing different tools such as pro-rata, circuit theory [2][3][4][5][6][7][8][9], sensitivity analysis [10][11][12][13][14][15], game theory [16][17][18][19][20], neural networks [15,[17][18][19][20], radial equivalent networks [21,22], power flow tracing [23][24][25][26][27][28][29][30][31][32][33][34][35][36], linear constrained optimisation modelling [29], and proportional sharing (PS) assumption [30][31][32][33][34][35]…”

“…The work in [1,2,13,14,16,21] supposed that the generators are responsible for one-half of the total system losses and the other half should be allocated to the loads without presenting any physical justification for this sharing ratio. To implement the techniques of the authors in [27][28][29][30][31][32], the transmission system must be initially converted to a lossless system. To do so, the authors of the mentioned references move the active loss of each transmission line to one or both end buses of that transmission line and modify the transmission line flow; or replace the transmission line with two lossless ones and take its loss into account as a virtual load on a fictitious bus connected to one or both end buses of the original transmission line.…”

Optimal cost allocation algorithm of transmission losses to bilateral contracts

“…The optimal fuel cost for transmission losses is determined based on the marginal system cost. In (8) formulates the marginal cost of a power system;…”

“…The optimal transmission loss formulates cost allocation to related parties. Increased efficiency on the generator side has been widely studied, especially in the operation of generator-based limits [8]. In the deregulated market that is more competitive and sustainable, the calculation of the allocation of transmission losses needs to involve all components of the power system as in [9].…”