Loss Allocation with Active Consumer Incentives for Distribution Systems with Distributed Energy Resources

Developing accurate loss allocation approaches has become more important than ever before due to the deregulation of electricity market, adoption of shared energy storage systems, and proliferation of distributed energy resources (DERs). This paper proposes a loss allocation method with active consumer incentives. The proposed method utilizes current decomposition concept along with physically based loss apportioning to fairly allocate losses to all players. A load-independent current distribution matrix is presented to estimate the partial flows of load currents in different branches. The current decomposition method is also used to determine incentives/penalties to all players depending on their impact on system performance. In addition to power loss, impact of loads/generators on line loading and voltage profile are also introduced. The proposed method is applied to a radial and weakly meshed deregulated distribution system with multiple DERs. Being based on circuit theory and physical basis, the proposed method is simple, fair, and self-explanatory. The results are compared to existing methods showing almost the same results through a much simpler method. A case demonstrating the impact of energy storage systems on grid losses is also included.