The concept and algorithm of "conductor renting" and its application in transmission losses allocation

The cost of transmission losses represents an important part of transmission costs. In the context of competitive electricity marketplace, the costs caused by transmission losses should be reasonably allocated to various market participants, but the nonlinearity of the transmission losses function makes the allocation very difficult. In this paper, the concept of "conductor renting" is proposed for the first time and is used to solve transmission losses allocation problem. The analysis indicates that the active power losses caused by different current components are in proportion to the conductor section acreage and the corresponding conductance used by the current components, and the reactive power losses caused by current components have similar characteristics. Based on the concept of conductor renting, it is easy to solve the losses allocation problem, and the interaction effect of the transactions is eliminated.