Loss Allocation Research Articles

Active and reactive power transmission loss allocation to bilateral contracts through game theory techniques

Transmission loss has a considerable effect in overall power generation. For fairly distributing the charge of losses to generators and consumers in a deregulated power system, the allocation of this loss is very important. Game-theoretic methods seem fairer for share determination of each participant of a coalition with no discrimination. In this paper, the active and reactive power transmission losses are allocated to bilateral transactions simultaneously through load flow calculations and cooperative game theory solutions. The loss allocation problem and each bilateral transaction are treated as a game and a player of the game, correspondingly. Two game theory-based approaches, the Shapley value and the $\tau $-value, are surveyed. The former is the most relevant game theory allocation method, while the latter is a novel approach. The influences of all loss allocation game players and bilateral bargains on transmission loss are considered. These two proposed methods are applied to a simple 6-bus network and the modified IEEE 57-bus test system. In the 6-bus network positive MVA loss allocations and in the IEEE 57-bus system negative MVA loss allocations are studied. Finally, the results of allocation procedures are compared to each other.

Advanced Path Integral Algorithm of Transmission Loss Allocation Using Smoothness of Loss Sensitivity

This paper presents an advanced path-integral algorithm to determine bus-wise transmission loss allocation using smooth properties of loss sensitivities. The properties of loss sensitivity have been investigated with typical system trajectories in consideration of the market-operating strategy. The smoothness of the loss sensitivity is extensively examined along the integral paths to verify that all paths of straight line segment keep the smoothness of loss sensitivity well. The previous study has shown that, given an integral path, accurate loss allocations can be obtained by the path integral method, however, the integration procedure may require excessive computational burden for large power systems. This paper proposes an advanced loss allocation algorithm to drastically reduce the computational burden by using the smooth property of the loss sensitivity.

The Influence of Product Liability on Vertical Product Differentiation

This paper explores the impact of product liability on vertical product differentiation when product safety is perfectly observable. In a two-stage competition, duopolistic firms are subject to strict liability and segment the market such that a low-safety product is marketed at a low price to consumers with relatively small harm levels whereas the safer product is sold at a high price to consumers with high levels of harm. Firms’ expected liability payments are critically influenced by how the market is segmented, creating a complex relationship between product liability and product differentiation. We vary the liability system’s allocation of losses between firms and consumers. Shifting more losses to firms increases the safety levels of both products, but decreases the degree of product differentiation. Some shifting of losses is always socially beneficial, but the optimum may require that some compensable losses stay with the consumers.

Harmonic Distortion Contribution for the Transmission Loss Allocation in Deregulated Energy Market: A New Scheme for Industry Consumer

The industry has rapidly growth and energy supply technology advanced are become main factor which to contribute of the harmonic losses. This problem is one aspect that may affect the capability of the transmission line and also to the efficiency of electricity. This paper proposes a new scheme to allocate the cost pertaining to transmission loss due to harmonics. The proposed method, called as Generalized Harmonic Distribution Factor, uses the principle of proportional sharing method to allocate the losses among the transmission users especially for industry consumers. The IEEE 14- and 30 bus test system is used to compare the proposed method with existing method. The results showed that the proposed method provided a scheme better in allocating the cost of transmission loss, which could encourage the users to minimize the losses.

An Approach for Transmission Loss and Cost Allocation by Loss Allocation Index and Co-operative Game Theory

In the present work authors proposed a novel method for transmission loss and cost allocation to users (generators and loads). In the developed methodology transmission losses are allocated to users based on their usage of the transmission line. After usage allocation, particular loss allocation indices (PLAI) are evaluated for loads and generators. Also Cooperative game theory approach is applied for comparison of results. The proposed method is simple and easy to implement on the practical power system. Sample 6 bus and IEEE 14 bus system is used for showing the effectiveness of proposed method.

Risk-based profit allocation to DERs integrated with a virtual power plant using cooperative Game theory

Distributed energy resources (DERs) play a key role in the deregulated power systems with environmental concerns. Their scales and the uncertainty pertaining to intermittent generation of renewable resources are the major challenges of participating in wholesale electricity markets. The concept of virtual power plant (VPP) makes their integration possible and also allows covering the risk due to uncertainties. It yields a surplus profit in comparison to profits made by uncoordinated DERs. In this paper, using a novel stochastic programming approach, the participation of a VPP in the day-ahead market (DAM) and the balancing (real-time) market (BM) is considered. The uncertainties involved in the electricity price, generation of renewables, consumption of loads, and the losses allocation are taken into account. The desired risk-aversion level of each independent DER owner is used to compute the conditional value-at-risk (CVaR) as a well-known risk measure. The role of each DER in covering the risk and making the total profit is evaluated. The Nucleolus and the Shapley value methods as the cooperative Game theory approaches are implemented to allocate VPP's profit to the DERs. The results of a numerical study are presented and concluded.

IJIREEICE - Electrical, Electronics, Instrumentation and Control

In deregulated power systems, the transmission loss allocation plays a key role in planning and designing of the power system. In practice, these losses should be allocated to both generators and loads depending on the amount of contribution in the total power system losses. In this paper, a new methodology to optimally allocate the transmission losses to either generators or loads based on the power flow tracing methodology is presented. In this methodology, trace usage coefficients are formulated to allocate transmission losses. In real time, system operator tries to minimize the transmission losses to increase the security of the system. In this paper, for the sack of analysis, the formulated OPF problem with transmission losses as objective is solved while satisfying system constraints using gravitational search algorithm. The minimized transmission losses are then allocated to either generators or loads. The proposed methodology is tested on standard IEEE-30 bus and real time Indian-24 bus test systems with supporting numerical results.

A Cooperative Game Theory Approach for Usage and Reliability Margin Cost Allocation under Contingent Restructured Market

Restructuring of Electricity supply industry introduced many issues such as transmission pricing, usage, loss and reliability margin (TRM) allocation. Many methodologies have been proposed to address these issues. In this paper authors propose a graph theory based combined methodology which involves modified Kirchhoff matrix for transmission usage and reliability margin allocation. For optimal usage allocation at base case cooperative game theory is used. Further, novel reliability indices are developed for optimal transmission usage and cost allocation under N-1 contingency condition. Full and partial recovery models of transmission cost allocation are also developed. First, the transmission usages are allocated to users for base case power flow by modified Kirchhoff matrix. For allocating transmission usage cost under contingency, line outage impact factor (LOIF) and line outage distribution factor (LODF) are calculated. Further these factors are modified and calculated at maximum loading condition of line. Hence these reliability indices are called line outage impact factor at maximum flow (LOIFM) and line outage distribution factor at maximum flow (LODFM). With the help of these indices maximum transmission usage cost is recovered from the users. For usage cost allocation under contingency condition Modified MW-mile approach is used. Results are shown for the sample 6 bus system and IEEE 14 bus system.

Coordinated reactive power control to achieve minimal operating costs

This paper deals with the influence of distributed generation (DG) on distribution losses in medium voltage (MV) distribution networks. The aim was to minimize the losses and operation costs with only DG reactive power compensation with respect to voltage constraints. Thus, the active power flows are not affected as any attempt of active power curtailment causes financial loss for DG owner. The advantage of technologies that build up new smart grids is the possibility of developing new approaches of network management. In this paper, a coordinated reactive power control is presented which takes advantage of real-time data measurements from the network. The load-flow algorithm is implemented into the coordinated control, which determines the optimal operating point using a modeled network for every generator separately. The aim of the algorithm is to minimize the reactive power flow. The solution is evaluated by means of computer simulations. The simulated network is a part of the Slovenian medium-voltage distribution network. The presented results illustrate that the algorithm results in fast, simple and efficient energy loss allocation with an acceptable level of accuracy.

Fraud, investments and liability regimes in payment platforms

In this paper, we discuss how fraud losses impact the price structure chosen by a monopolistic payment platform, if merchants can invest in fraud detection technologies. We show that liability rules bias the structure of the prices charged by the platform to consumers and merchants with respect to a case in which such a responsibility regime is not implemented. If consumers are liable for fraud, the profit-maximizing price structure is neither biased in favor of consumers nor merchants. If consumers are not liable for fraud, the platform lowers the price for merchants to provide them with investment incentives. Under the zero liability rule for consumers, the profit-maximizing allocation of fraud losses maximizes social welfare.

A Novel Shapley Solution for Power System Loss Allocation Under Hybrid Transaction Modes

The allocation of power system loss under hybrid transmission modes was investigated. First, a concept and method for converting a bilateral transaction into its two equivalents pool transactions were proposed. Then, a model based on Shapley value was designed to allocate the power system loss in the framework of equivalent pool transactions. The Shapley solution in cooperative game theory was employed to allocate the power system loss to each load pool transaction that includes the equivalent ones. The proposed method is applicable for electricity markets containing pool and bilateral transactions. It satisfies electric circuit laws and provides economic signals to users. The effectiveness of the proposed method is verified by the IEEE 5-bus test system.

A modified methodology in electricity tracing problems based on Bialek’s method

In this paper, a novel approach to solve electricity tracing problems for allocating the cost of transmission and loss allocation is proposed. The exact knowledge of power values is no longer needed. The proposed method is also able to specify those lines whose power flows depend on generation/demand of a single node. This approach is based on Bialek’s tracing method which specifies the contribution of each nodal generation/demand in power flow of a particular line. The advantage of our approach over Bialek’s method is that there is no need to calculate matrices for upstream and downstream distribution, and nodal demand and generation which leads to faster computation. Our method solves the problem in two different aspects, upstream and downstream, resulting in two sets of answers, one for lines whose power flow depend on a single nodal generation and the other for lines whose power flow depend on a single nodal demand. With this approach, generators and loads that are dependent on a specified line can be recognized. To clarify the computations, the solution to a sample case study is provided using the proposed algorithm. To verify our method, the results of our algorithm for a sample 5-bus power network and the IEEE 14-bus test system are compared to those of the Bialek’s algorithm.

Distribution Loss Allocation for Radial Systems Including DGs

Due to the liberalization of the electricity market and the introduction of distributed generation (DG), the importance of distribution loss allocation (LA) has increased. This paper presents a new method for distribution power LA in radial systems. The proposed method, which is based on the results of power flow and considers active and reactive power flows of lines for LA, is composed of three steps. In the first step, starting from the source nodes (i.e., the nodes whose generation is more than their load), the power loss allocated to all nodes is calculated and then the power loss allocated to the loads connected to each node is obtained. In the next step, the total power loss is allocated to the nodes in order to calculate the power loss allocated to the DGs based on the results of this step. In contrast to the previous step, in this step, allocating power losses to the nodes starts from sink nodes, which are the nodes whose load is more than their generation. In the final step, normalization is executed. The application of the proposed method is illustrated on two distribution feeders, and the results are compared with other methods.

A TCSC Incorporated Power Flow Model for Embedded Transmission Usage and Loss Allocation

Authors present a power flow tracing based method for usage and loss allocation along with FACTS devices. Graph theory is the basis for usage allocation. Modified Kirchhoff matrix is used for this purpose. FACTS devices are used in the system for various purposes such as reactive power compensation; voltage profile improvement etc. hence in this paper Thyristor controlled series controller (TCSC) with voltage source modeling is used for finding the effect of FACTS device on transmission usage and loss allocation. A sample 5 bus is used for this purpose.

LOSS ALLOCATION OF TRANSMISSION LINE AND MINIMIZATION OF LOSS FOR 5 BUS,14 BUS &30 BUS SYSTEMS

The paper focuses on the issue of transmission loss allocation and transmission loss minimization by incorporating UPFC injection model using load flow analysis. To investigate the effect of the UPFC on the steady state condition of the system and load flow, different models can be used. These models are usually based on modification of traditional load flow methods. In this project, a mathematical model for UPFC referred as UPFC injection model is used. Since accurate power tracing is very difficult, allocation of losses for a particular transaction (in power business it is buying and selling system) may not be effectively realized. However loss allocation is an important aspect in determining the cost of transmission. Thus a methodology to find the losses accurately is vital. It is imperative to make sure that all users of the transmission network are charged proportionate to their usage and this aspect is all the more important because of the common infrastructure they use. The Z-bus loss allocation method is used to achieve the required objective. This method will promote more efficient network operations when implemented in deregulated electric industries. The Unified Power Flow Controller (UPFC) injection model is incorporated in Load Flow Model by the method of Newton Raphson Algorithm to study its effects for power flow control and losses minimization in the power system. In this project optimal placement of UPFC is conducted based on active power loss Sensitivity factors. Based on these sensitivity factors the UPFC is optimally placed in the required transmission line to investigate the impact of UPFC in the system. The changes in the system are studied to see the impact of the UPFC. The impact of UPFC are analyzed by using 5-Bus, IEEE.

RESOURCE MANAGEMENT AND FORECASTING LOSSES WITHIN THE PROJECT ORGANISATIONAL STRUCTURE OF THE CIVIL PROTECTION SYSTEM

Objective: To develop a method, based on Pareto principles, for increasing resource management effectiveness with prediction and minimisation of losses arising from emergency situations, both industrial and natural within the project-based organisation structure of the civil protection system. Methods: Theoretical research of an effective management process, with the aid of Pareto distribution, was applied to project organisational structures through the Office of Civil Protection. Current project management tools such as: PMBOK, P2M, PRINCE2, ICB, etc. provided a basis for scientific research. During the research process various methods were applied such as: systems theory, systems analysis, statistical analysis, cognitive analysis theory, mathematical modelling, information technology and management. Results: Presentation of theoretical and experimental data allowed for the calculation of losses during emergency situations. These were determined with the aid of Pareto distributions and statistical methods, with a focus on minimising and estimating losses more accurately. The developed technique allows for the control of singular as well as global losses, at all phases as well as levels of management within the project office, simultaneously ensuring the mitigation of losses and attainment of a high level of functional effectiveness of the civil protection system. The basis for the developed technique was a mathematical description of characteristic indicators and maximum as well as total losses for the Pareto distribution. This approach revealed credible data which will help to increase the effectiveness of performance in a unified system of civil protection. Results allow for better management decisions, improved predictions and minimisation of losses arising from environmental disasters. Conclusions: Results from research allowed, on the basis of long term statistical data, to achieve a high degree of convergence. The developed technique, using Pareto distributions, demonstrated that its application to resource management in the civil protection system leads to minimisation of losses during emergency situations and optimisation of the project management process, simultaneously making it possible to anticipate resource losses at all stages. Furthermore, research was harnessed to address current and applied research challenges, which impact on the improvement of project and programme management; optimal allocation of losses and creation of the most favourable conditions for the organisational management of a unified system of civil protection under the auspices of The Office of Civil Protection. The proposed method describes characteristic values of total and maximum losses, which may be used to obtain most accurate and relevant data, which in turn make it possible to minimise errors during management decision making, and significantly enhance the research base for projects and programme management methods . Obtained results will afford an opportunity to consider the unified system of civil protection in Ukraine in context of a project organisation structure. 1 Lviv State University of Life Safety; address: Ukraine, 79000, Lviv, Kleparivska St., 35; e-mail: jurarak2012@gmail.com; percentage contribution – 60%. / Львовский государственный университет безопасности жизнедеятельности. Адрес: Украина, 79000, Львов, ул. Клепаровская, 35; электронная почта: jurarak2012@gmail.com; фактический вклад – 60 %. 2 Lviv State University of Life Safety; address: Ukraine, 01601, Kiev, O. Gonchara St., 55-a; e-mail: kvashuk@mns.gov.ua; percentage contribution – 40%. / Львовский государственный университет безопасности жизнедеятельности. Адрес: Украина, 01601, м. Киев, ул. О.Гончара 55-а.; фактический вклад – 40 %. © by Wydawnictwo CNBOP-PIB Please cite as: BiTP Vol. 34 Issue 2, 2014, pp. 39-46 DOI:10.12845/bitp.34.2.2014.3

Integrating the flexibility of the average Serbian consumer as a virtual storage option into the planning of energy systems

With the integration of more variable renewable energy, the need for storage is growing. Rather than utility scale storage, smart grid technology (not restricted, but mainly involving bidirectional communication between the supply and demand side and dynamic pricing) enables flexible consumption to be a virtual storage alternative for moderation of the production of variable renewable energy sources on the micro grid level. A study, motivated with energy loss allocation, electric demand and the legal framework that is characteristic for the average Serbian household, was performed using the HOMER software tool. The decision to shift or build deferrable load rather than sell on site generated energy from variable renewable energy sources to the grid was based on the consumer's net present cost minimization. Based on decreasing the grid sales hours of the micro grid system to the transmission grid from 3,498 to 2,009, it was shown that the demand response could be included in long-term planning of the virtual storage option. Demand responsive actions that could be interpreted as storage investment costs were quantified to 1?2 per year in this article.

A Power Flow Tracing based Method for Transmission Usage, Loss & Reliability Margin Allocation

Restructuring of Electricity supply industry introduced many issues such as transmission pricing, transmission loss allocation and congestion management. Many methodologies and algorithms were proposed for addressing these issues. In this paper a graph theory based method is proposed which involves Matrices methodology for the transmission usage, loss and transmission reliability margin (TRM) allocation for generators and demands. This method provides loss and TRM allocation in a direct way because all the computation is previously done for usage allocation. The proposed method is simple and easy to implement in a large power system. Further it is less computational because it requires matrix inversion only a single time. A comparison between proposed method and already exiting methods also presents. Results are shown for the sample 6 bus system and IEEE 14 bus system.

Artificial Intelligence–Based Loss Allocation Algorithm in Open Access Environments

In deregulated power systems, market participants prefer to have a fast and accurate estimation of their loss quota for any transaction before confirming their transaction in the market. This helps participants increase their own benefit. This paper presents a fast artificial intelligence–based incremental transmission loss allocation (ITLA) algorithm for determining the loss quota of any transaction and participant entity in open access environments. As a feature selection technique, the decision tree (DT) method is applied in order to define the transactions with inconsiderable impact on the loss quota of each market participant. Then, using only the effective transactions, an artificial neural networks (ANN) is trained to estimate the loss quota of each transaction in the market. Applying the DT significantly reduces the input dimension of the ANN, and thus it reduces the training time and improves the accuracy of the loss quota estimated by ANN. The market participants can employ the proposed artificial intelligence-based ITLA algorithm to estimate their own loss quota even in large scale power systems with large amount of possible transactions. One attractive result of the proposed algorithm is that it is implemented in multilateral open access environments including some trader entities and bilateral markets as well. The proposed algorithm is computationally efficient and provides solution on a real-time application. Therefore, it can be based on ex-ante loss allocation methods in the future to improve market efficiency. The proposed algorithm is applied on IEEE-RTS test system and simulation results show the algorithm’s effectiveness.

A Loss Allocation Model Based on the Superposition Theorem

This paper presents a new procedure for allocating transmission losses to generators and loads. Based on the superposition theorem, the paper proposes that electrical power flow in transmission line can be separated into a series of power component induced by each individual power supplies, and transmission line power losses can be separated into a series of power loss component induced by each individual power supplies. Thus, each power supplys contribution to the branch power loss is resolved. Based on the theory founded above, corresponding loss allocation model is established. Results illustrate the validity and rationality of the new allocation process with expected results.