A Circuit Theory-Based Loss Allocation Method for Active Distribution Systems

The integration of optimally placed distributed generation (DG) units in a distribution system can contribute significantly in loss reduction among distribution feeders. In practice, this loss reduction may provide associated benefit to load points (consumers) though they are not contributing for the same. The loss allocation strategy should be such as to benefit DG owners who have actually contributed toward loss reduction. This paper presents a new circuit theory-based loss allocation method for active distribution systems. The method first employs branch-oriented approach to decompose cross-terms of power loss among contributing load points. Thereafter, the contributing currents of DGs are determined using superposition principle to allocate their remuneration/penalty. The proposed method is applied to 33-bus test distribution system. The application results highlight the importance of the proposed method.