About the impact of burdening and relieving partial power flows caused by loop flows in interconnected networks on ITC amount

Expenses caused by energy trade have to be covered by their originators. 3^rd party TSOs are entitled for compensation payment if both source and sink of each regarded power flow is situated outside the borders of its member state. Furthermore, power flows contributing to reduce tie-line utilization should be considered to lessen compensation payment. In the past, focus was on transit flows, starting and ending in different countries and using the grid of a third one. However, Loop Flows evoke utilization of 3^rd party grids as well and thus have to be considered in fair Inter-TSO-compensation (ITC) schemes. In this paper a model from Wolter and Huumlhnerbein, which is based on the law of superposition and is by now the only model to identify partial power flows solely based on physical principles, is used to figure out the Loop Flow amount in interconnected networks. It is clearly shown that Loop Flows have a significant effect on tie-line utilization and therefore cannot be neglected in the calculation of compensation payment in the future.