Counter-flow in a deregulated power system network and its effect on transmission loss allocation

In a deregulated electrical power system network, every transaction of electricity between a generator and a customer involves some loss. In some cases, a generator while supplying its load however, may, actually decrease the transmission loss by opposing an initial flow. This flow is commonly termed as counter-flow. An algorithm has been developed to trace counter-flow in a deregulated power system network and calculate transmission loss share of each generator considering counter-flow. Two methods, namely the incremental load flow approach (ILFA) and marginal transmission loss approach (MTLA) are utilized to determine allocation of transmission losses.