Marginal Contribution of Active and Reactive Power in Allocation of Distribution Losses

This paper presents a new method for the allocation of losses to consumers in distribution systems (DSs) under the reform structure of the electricity market. The proposed method adopts a branch-oriented approach and follows the principle of an electrical circuit to determine the power flow in the distribution branches. It identifies the marginal contributions of active and reactive power of loads in system losses corresponding to their power consumption at nodes. Apart from traditional marginal loss coefficient (MLC) methods, however, the proposed method recovers entire system losses without a step of reconciliation. The average marginal contribution of both active and reactive power makes the proposed method more effective and adoptable, especially for the radial structure of DSs. In order to test the proposed method, 33-bus DS is being considered. The results of the proposed method are compared and validated with those of the power summation and branch decomposition methods of loss allocation.