Transmission Loss Allocation in Restructured Electrical Energy Market Based on Circuit Theory and Network Usage

This paper proposes a new analytical method for transmission power loss allocation for pool-based markets in restructured power systems. It is based on circuit laws and the concept of orthogonal projection. In this method, the current flow in each branch is divided into two components by using the superposition principle. The first one is due to the power transfer from generators to distribution companies or loads. The second component is due to the voltage differences between generation companies buses. The later currents are called no-load or circulating currents. The responsibility of each load and generator to power losses in each branch of the network is derived analytically. Hence, the share of each load or generator in the overall transmission network losses is estimated. The proposed method is applied to two test systems and compared with four well known methods.