Allocation of loss cost by optimal and proportional tracing methods

Allocation of transmission loss between network users is a challenging and contentious issue in a fully deregulated system. Also, the cost of loss must be compensated in a fair manner by users which use the transmission network. Power flow tracing can find the extent of network usage by the users that can be used for loss allocation. In this paper, proportional tracing and optimal real power tracing methods are used for allocation of loss and its cost with presence of congestion in transmission lines. GAMS software is employed for solving optimal real power tracing as linear programming problem. The results obtained by proportional and optimal tracing are compared in the modified IEEE 14-bus system and the results show that optimal tracing is more fair approach than proportional tracing.