A Direct Method for Transmission Loss Allocation

Fair allocation of transmission loss among market participants is essential in the present restructured electricity markets. This paper proposes a direct method to find the loss allocation. The methodology is based on simple circuit laws and does not involve any assumptions. Considering the real power injection and real power loss contribution factors loss alloca- tion can be done. Case study of the proposed loss allocation methodology is conducted on an IEEE 14 bus system. Results are compared with the results of the existing methods in the literature.