Allocation of distribution network losses with different types of distributed generation

The cost of active power generation is affected by distribution losses which must be allocated fairly between consumers and generators to get the economic efficiency of the electricity market. The paper presents an exact method for loss allocation in radial distribution network (RDN) with distributed generation (DG) in deregulated environment. This method is simple, easy to understand and makes no assumptions to allocate network losses. Also, this paper analyses impact of different types of DG, viz. DG injecting both active and reactive power, DG injecting active power and absorbing reactive power, DG injecting active power only and DG injecting reactive power only, on allocation of real power losses among network participants. To test the effectiveness of proposed method, it has been tested on a 28-node radial network and obtained results have been compared with those by branch current decomposition loss allocation method and pro rata method.