A novel loss allocation method applicable for any desired network topology.

• Introducing a loss allocation method based on power tracking that can be implemented in any desired network topology, including loop and meshed networks. • Proposing a loss allocation method that can be properly implemented in transactive energy markets. • Determining the exact transacted energy between each supplier and consumer using optimal power flow methods. • Running the proposed method on different test systems and discuss its superiorities. Due to the expansion of power networks in response to the increase in total load demand, the complexity regarding power systems transmission networks' configuration has been increased. Similarly, with the advent of local energy markets and transactive energy concept, power distribution networks are undergoing a fundamental change. In this respect, numerous agents are transacting power within both distribution and transmission networks. Therefore, as more power is transacted among agents in different energy networks, power networks face higher power losses. Dealing with the financial outcomes of these losses, a general accurate yet fast method for loss allocation in power networks is of utmost importance. In response, this paper proposes a novel loss allocation framework based on the power tracking method that is applicable for any desired network topology within both transmission and distribution networks. In this regard, at first, a new method is proposed to obtain how the optimal scheduled generation of each production unit should be allocated to each specific load of the network. Then, it is obtained that how these transactions are flown in each line of the network. In the next step, the exact losses in each line resulted from distinct transactions between each pair of agents in the network are obtained. Finally, how each specific transaction contributes to the total losses of the network can be calculated. By implementing the proposed framework on a modified IEEE 14-bus test system and a 69-bus IEEE distribution network, the applicability and effectiveness of the proposed method is demonstrated by the numerical results. The results indicate that the proposed method can be implemented in any network and with any scale. [ABSTRACT FROM AUTHOR]