Exact Cross-Term Decomposition Method for Loss Allocation in Contemporary Distribution Systems

Abstract

High penetration of distributed generation (DG) units in contemporary distribution systems can contribute significantly towards loss reduction in distribution feeders. The loss allocation method should reward the benefit of loss reduction to DG owners (DGOs), instead of diverting the same to the load points which actually never contribute towards loss reduction. This paper presents an exact cross-term decomposition method that decomposes each crossed term of power loss/remuneration among contributing network users while independently addressing their active and reactive power transactions. Separate allocation factors are proposed to decompose each individual crossed term involved. The allocation factors are not based upon heuristic, as in several existing methods, but are derived analytically. The method employs superposition principle to evaluate contributing currents of DGs. Thereafter, the losses/remunerations are allocated fairly among network users by suggesting a suitable remuneration strategy for DGOs. The proposed method is investigated on standard test distribution system. The application results are promising compared with other established methods.