The research on loss allocation methods in electricity market

With the development of global innovation in electric power market, transmission system will ultimately be an independent part of the market transaction. Transmission loss cost allocation is an important constitution of transmission tariff, different loss allocation method will affect economic benefit and trade enthusiasm of each market member, so loss allocation problem is desired to settle in electric power market. In this paper, it firstly introduced several familiar loss calculation methods The paper researched on loss allocation, according to the compared results, made out some common problems exist in loss allocation methods, then spent lots time and energy in researching on power flow tracing method.