Allocation of network MW flows to bilateral transactions

Quantifying the impact of a given bilateral transaction on transmission circuits is exceedingly important for the proper allocation of transmission charges and system losses to individual transactions as well as the acquisition of transmission access rights for cross-border trades. This paper presents an approach to attribute the MW flows in transmission network branches to individual bilateral transactions. The load flow problem is reformulated in terms of MW power transactions and a relationship between line flows and the transaction amount is developed. The construct described can handle not only bilateral transactions but also simultaneous transactions of multiple nodes of injection and delivery. The developed methodology is applied to a small practical test system and results are presented.