A New Method for Transmission System Loss Allocation in Electric Power Markets

The transmission loss allocation problem in deregulated electric power systems is discussed in this paper and a new method is presented. Formulations are based on network representing relations and no additional assumption or simplification is considered. Also in suggested method, allocation of losses is assigned to active power buyers and sellers as well as reactive power generators and loads. So it can exclude the charge of losses due reactive power exchange from active power loss allocation results. Numerical test is performed on a standard power system for this method against some other famous loss allocation techniques.