Abstract

During recent years, the shift from monopoly integrated power systems to restructured power systems caused an increased competition among the electricity market. In restructured power systems, providing a fair and impartially service pricing is still in discussion on ‘who should be reprimand’ for the losses contribution. The loss allocation (LA) causes appropriate economic penalties or rewards to generators and consumers. This study presents a reasonable method for LA in power systems. This method is based on the injected active and reactive power into network lines. At first, the contribution of the loads in the loss of each line is obtained regardless of the generators. Then, the loss of lines is allocated to source buses and the contribution of each generator in the loss of each line is calculated. At the final step, a normalisation factor is introduced and the final contribution of each load and each generator in the loss of each line is calculated separately. The proposed algorithm is simple and easy to implement on the large-scale power systems.‏ This proposed method has been applied to the IEEE 14-bus and IEEE 30-bus test systems, and the obtained results are compared with other existing LA methods.

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