Apportionment of distribution losses using the nodal marginal allocation approach

This paper presents a model for apportioning variable and fixed distribution losses to users of a distribution network. Allocation of variable losses is based on a locational, cost-reflective principle and is realized using the DC load flow model and nodal marginal Loss Factors. Fixed losses are apportioned using a non-locational principle. The developed methodology is verified on a real-life test system.