Toward Fairness in Transmission Loss Allocation

In this paper a new approach for loss allocation is presented. The main idea is voltage angle allocation, i.e. determining the contribution of each contract on the voltage angle of each bus. DC power flow is used to compute a primary solution for angle decomposition. To consider the impacts of system non-linearity on angle decomposition, the primary solution is corrected in different iterations of decoupled Newton-Raphson power flow. Then, the contribution of each contract in power flow of each transmission line is computed based on angle decomposition. The loss of each transmission line is allocated among different contracts proportional to the square of their contributions in the line flow. The presented approach is applied to the IEEE 30-bus test system.