Algorithm for Transmission Loss Allocation in Market-Based Power Systems with Wind Generation

Abstract

This paper proposes a novel method for transmission loss allocation in restructured power systems. It is based on circuit laws and the orthogonal projection theory. In this method, the current flow in each branch is divided into two components. The first one is due to the power transfer from generators to loads. The second component is due to the voltage differences between generators’ buses. The later currents are called no-load or circulating currents. These two current components are computed by using the superposition principle. The contribution 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. Furthermore, the impact of bilateral and multilateral contracts is incorporated in the power loss allocation algorithm. The contribution of each contract to the total transmission system power loss is estimated accurately. The method also takes into account the time variation of loads and wind generation. The proposed method is applied to two test systems and compared to the prorate, game theory, and Z-bus approaches.