Introducing a New Method for Multiarea Transmission Networks Loss Allocation

Transmission loss allocation in very large networks with multiple interconnected areas or countries is investigated in this paper. The main contribution is to propose a method to calculate the amount of losses due to activity of each participant in the multi area markets. Pricing of cross-border trades in Multi area systems is often difficult since individual countries may use incompatible internal transmission pricing regimes, and they are usually unwilling to disclose any sensitive information about their own systems. A new methodology based on the loss formula concept for allocating electric losses to generators and loads is presented in this paper. The only data required are the power flows and characteristics of tie-lines and PV Ward equivalent model of area networks from border nodes point of view. Proposed methodology is tested on the IEEE 118 node network which is divided into three areas, each with a different internal transmission pricing methodology. In the proposed methodology no information is required about individual loads, generations or detailed internal networks. It is also shown to be simple, transparent and very fast and it can deal effectively with multiple pricing policies.