A new formulation of generator penalty factors

A new algorithm for calculation of transmission loss penalty factors for generators, suitable for real-time application, is presented. Previously published techniques for generator penalty factor calculation were derived from the power flow model with their basis upon reference bus location or internal-external interchange, disregarding the electrical distance between generation and load. This new method is based purely upon the physical definition of a penalty factor, that is, losses resulting from delivering power across the transmission network from a generator bus to the loads. The penalty factors are calculated from a solved network model and thus reflect network conditions in the result. Considerations in implementation of the new technique are discussed, and test results on an example network are presented. Other applications of the formulation are explored