Research on Modes of Purchasing Transmission Loss Compensation Service

Modes of purchasing loss compensation service, one of the factors affect loss costs, are investigated. Three purchasing modes are generalized: purchase from system operator; purchase from loss suppliers directly; purchase from system operator or loss suppliers directly. From the view of management, the procedures of first two are contrasted at first, and then all of the three are compared synthetically. Purchasing from system operator is simple to implement and reliable, purchasing from loss suppliers directly is more complex but can promote social benefits, the third mode, which combines of the characteristics of the first two, is easy and efficient. The selection of purchasing modes in regional electricity markets of China is discussed later. Also the problem of computing the losses caused by trades when they purchase loss compensation service from loss suppliers directly is briefly analyzed. The work can provide theory support for construction of electricity market operation system