A new method for transmission Loss Allocation method in the deregulated power market

The past decade has seen a dramatic change in the manner in which the power industry is organized. In a deregulated environment, Loss Allocation in the transmission lines is one of the most important problem, so a transmission loss allocation (TLA) method for generator and load nodes is presented by considering mathematical formulation between node power and line power flow. The formulation is based on X-matrix in DC transmission network. By the TLA method, an optimization strategy of DC power dispatch is proposed compare with AC optimal power flow (OPF) and former DC-OPF method. The proposed TLA method is also one of useful way to assess network use cost for individual transaction participant in the deregulated power market. The effectiveness of the proposed methods is illustrated through numerical examples for IEEE-118 power system.