Justified distribution factors approach for pool modelling

Distribution factors have been used to identify the contributions of the transmission users towards line flows in an electricity market. They are the basis of transmission usage charges in many cases more fairly. However, the existing distribution factors still have various limitations which prevent the wider application of this technique in electricity market practices. In this paper, a new technique is proposed to evaluate the transmission line flows more accurately. The proposed approach, referred to as justified distribution factors approach, is tested in a realistic electricity market against other commonly used distribution factors to show its effectiveness.