Y.A. Al-Turki and Z.R. Alzaid (Saudi Arabia)
Power loss allocation, pro rata, marginal allocation, unsubsidized marginal allocation, proportional sharing, and Z-Bus allocation.
Transmission losses can account for significant percentage of the total generation in power systems. In competitive electricity markets, each participant utilizes the network differently, to maximize its profit, so, their effect on the network, such as losses, can also be different. As no market participant wants to subsidize others in any mean, the transmission losses should be fairly allocated to market participants. To date, despite the existence of many loss allocation methods, no one method is commonly used. This paper critically studies and presents detailed simulated comparison of five existing loss allocation methods including pro rata, marginal allocation, unsubsidized marginal allocation, proportional sharing, and Z-Bus allocation methods. A description and mathematical model of each method are presented. Case study based on 3-bus system is provided from which discussion and comparison of the methods are concluded.
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