Distribution loss allocation technique with distributed generations

The cost of real power generation is affected by distribution losses which must be allocated fairly between generators and consumers to get the economic efficiency of the electricity market. The paper presents a new methodology for allocation of losses to network participants of radial distribution networks (RDNs) in the liberalized electricity market. The proposed method is based on the power summation algorithm. By using a circuit based branch oriented approach, it develops suitable relationship between branch losses and injected real and reactive power in the nodes. The proposed method develops new scheme for distributing cross terms by multiplicative of generator and load power which oppose the allocation techniques as described in the literature. Application of the proposed method for loss allocation is illustrated on 33-node RDNs incorporating three distributed generations. In order to validate the proposed method and show its effectiveness, it has been compared with other method.