Loss Allocation And Its Application Under The Electricity Market

Loss is one of important issues in the economic operation of power system. In electricity market, power generation, transmission, distribution and sale of electricity and other services, respectively, have different economic entities. Therefore, we must decompound and allocate the mix of traditional electricity cost. Loss is part of the cost of the services, Due to different loss allocation method would result a lot of differences when different users allocating the loss. Reasonable loss allocation can provide the correct economic signals to guide the optimal allocation of resources. Therefore, how to allocate the loss fairly and uniformly, becoming a issues of mutual concern between power network operators and users.This paper mainly studies in the loss allocation methods, and amending the bid of generation right.First, a novel method based on current projection was proposed to allocate the MVA power. It starts with allocating ( I~l)~2. According to the project affiliation allocate ( I~l)~2, then ( I~l)~2r_l,( I~l )~2x_l's allocation come true. And, discuss the rationality of the method from the cross-term assessments and the allocate ratio.Second, equitable loss allocation reflects the degree of the user using the network exactly, and it provides the right economic signals, which guides optimal distribution of resources. According to the characteristics of the loss allocation, the paper put forward a concept of loss allocation rate, and use the concept to improve the bid of the generation right to optimize the trade order.All the algorithms or methods presented in this paper are done simulation experiment using Matlab, which taking IEEE-14 system as background. The simulation result is presented, and it is proved that the algorithms or methods can work perfectly.