New paradigm of tracing algorithms: application to fair loss allocation in Indian system

MW power flow tracing was invented to assess the extent of network usage by the participants so as to allocate the transmission charges and losses. MW power tracing, a post-facto analysis of power flow solution, is amenable to multiple solutions. This implies multiplicity of solution space of cost and loss allocation problem. Existing tracing methods enforce a ´proportionate sharing rule´ to arrive at a solution. Case studies indicate that with such a sharing rule, extent of network usage predicted for large and distant loads can be much higher than the postage stamp or pro-rata allocation. To alleviate this problem, we suggest a new paradigm of MW power tracing algorithms wherein, we exploit the multiplicity of solution space so as to achieve a fair and equitable distribution of losses among the participants. We show that real power tracing represents a generic class of multi-commodity network flow problems and can be formulated as a linear constrained optimization problem. We propose a tracing compliant modified postage stamp allocation method which computes a traceable solution that minimizes deviation from the postage stamp allocation of losses. Results on practical data of central transmission utility of Western Regional Grid of India demonstrate the claims