Comparative Analysis of Different Cost Loss Allocation Methodologies in Distribution Networks with Distributed Generation

New market mechanisms to remunerate distributed generation should take into account a non-discriminatory access to distribution networks. In consequence, power losses must be fairly allocated among the all distributed generators and consumers. Several methods for power loss cost allocation have been proposed in the literature, divided basically into two groups. Firstly, methods as postage stamp, mw-mile and proportional sharing have been supported on an arbitrary allocation of power losses between consumers and generators, typically 50-50%. More recently, a modified proportional sharing procedure has been proposed based on the allocation of the entire losses to consumers disregarding the influence of distributed generators using the basic proportional sharing principle and reallocate avoided or produced losses among distributed generators. Secondly, marginal procedures have been extensively proposed in order to send efficient economical signals. This paper presents a comparative study of four different loss allocation procedures taking into account different levels of penetration of renewable sources in distribution networks. Results are obtained and discussed from a real distribution network.