Loss allocation methods for different power market models

Pool model, bilateral model and their hybrid model are three typical power market transaction models. The power market transaction models play a key role in selecting the loss allocation method. In the paper, the basic principles and mathematical models of different loss allocation methods are discussed. The power flow tracing method is especially suitable for Pool model, while the marginal loss coefficient method is useful for bilateral and hybrid models. The computation results of three typical base cases of a practical 2243-bus transmission system demonstrate that the two suggested loss allocation methods are feasible and effective.