Research On Loss Allocation Based On The Flow Current

In electricity market, every user must be responsible for the system losses he causes, and different methods of loss allocation will affect every user. Developing a fair loss allocation scheme for real and reactive power is significant to avoid cross subsidies and to give correct economic signals to market participants.This paper analyzes a review of current research on transmission losses allocation, studies basic principles and correlative problems of loss allocation in electricity market, compares features and shortages of current loss allocation methods of embedded cost allocation, proportionality allocation, marginal allocation and tracing flow allocation, on these bases, presents a new method for determining real and reactive power loss allocations in bilateral contracts, namely loss allocation based on the flow current.The basic idea of the method assumes that each transaction has its own effect on the system plus its interactive effect with other transactions. Each transaction share of losses is based on its contribution on the system currents contributions which need to be adjusted, due to the nonlinearity of the system, using the introduced Current Adjustment Factors (CAFs), which provide a reasonable way evaluating each transaction. Each transaction is independently responsible for the clear part of losses, and on the base of analyzing current research on allocating cross-item losses, an improving method is proposed , which is based on of mathematicaltransformation.Unlike other approaches, the method can be applied effectively to allocate both real and reactive power losses simultaneously, which saves time and effort. It can determine each transaction contribution to every branch on the system, which is helpful in congestion management. Furthermore, it can ensure the break-even requirement and provide appropriate economical signals to transactions. Thus the method preferably reflect that each transaction is allocated the system losses and avoid cross subsidies.The examples of a 4-bus system and the IEEE 14-bus test system show that the consistency of the proposed method with expected results, and it is proved that the theory and algorithm advanced herein correct, effective and feasible.