Z-Bus Loss Allocation

This paper presents a new procedure for allocating transmission losses to generators and loads in the context of pools operated under a single marginal price derived from a merit-order approach. The procedure is based on the network Z-bus matrix, although all required computations exploit the sparse Y-bus matrix. One innovative feature and advantage of this method is that, unlike other proposed approaches, it exploits the full set of network equations and does not require any simplifying assumptions. The method is based on a solved load flow and is easily understood and implemented. The loss allocation process emphasizes current rather than power injections, an approach that is intuitively reasonable and leads to a natural separation of the system losses among the network buses. Results illustrate the consistency of the new allocation process with expected results and with the performance of other methods.