Decomposition of power flows in bilateral/multilateral and poolco power markets

It is necessary to allocate fairly some quantities to every market participant in a deregulated environment of power industry. Because of the nonlinearity of load flow equations this question is mathematically equivalent to how to allocate the nonlinear function value to its independent variables. This paper studies the general mathematical theory of how to allocate the nonlinear function value to its independent variables. A set of equations are given which must be satisfied by any allocating result. A theorem is presented and proved which provides theoretical fundamental of decomposition of branch power flows in bilateral/multilateral and poolco power markets. Whether the structure of power markets is bilateral/multilateral or poolco, we can denote a participant of the power markets by a current injection vector. Applying basic equations of power systems network we can use these current injection vectors to express power flow of every branch in the network analytically. Applying the theorem acquired according to generalized allocating theory presented we can decompose power flow of every branch to the participants of the power markets accurately. Numerical example shows that the method of decomposition of power flow presented in this paper is accurate and effective.