The Net Loss Calculation In The Electricity Market And Loss Allocation

The new OPEN access transmission regime is spearheading the rapid disintegration of the well-entrench vertically integrated structure of the electric power industry. So loss cost allocation becomes a major issue in transmission open access faced by the electric power industry. This paper presents a new procedure for calculating transmission losses according to the actual situation of 10kV distribution network firstly. At Sections II, we present an overview of transmission loss cost allocation involves both technical and regulatory issues and introduce the Tracing Algorithm which is the most reasonable one of all methods available in the literature. Then test results of loss cost allocation using the Tracing Algorithm in four-bus system are presented. The objective of the last part is to provide a summary of recent methods of loss allocation and some opinion for designing fair and equitable loss allocation techniques.