An power market economic dispatch approach in considering network losses

The power generation from each plant in a power system produces different network loss levels. In a competitive power market, it is desirable to take network loss effect of each injection power into account while applying market-clearing mechanism. This paper proposes a method, which is based on the electricity flow tracing methodology to allocate transmission loss to each generator. It consists of a novel and practical economic dispatch algorithm, which uses generation network loss multipliers to modify bidding prices of electricity companies to determine trade planning. This method offers more equitable market clearing results and reduces the total network losses. The IEEE 30-bus test system is used to demonstrate the effectiveness of the method.