Improved loss distribution and modelling in DCOPF

Loss modelling in DCOPF has been used to overcome the drawbacks of neglecting losses in the lossless DCOPF model. Various models have been proposed in literature that incorporate losses in different ways. However, there has been no unique way of distributing the losses to buses. The approaches suggested in literature have some arbitrariness in distributing losses to various buses. Since change in loss distribution may lead to different solutions, a clear rationale is required in this regard because it has financial implications. In this paper, we explore the use of three loss allocation schemes to overcome the arbitrariness in the iterative DCOPF model. We compare the closeness of LMPs obtained after loss modelling with the benchmark LMPs which are obtained from ACOPF.