A bidirectional loss allocation method for active distributed network based on Virtual Contribution Theory

Loss Allocation is a crucial task in power transmission and distribution services, as it essential for reconciliation of generator-user settlement results. With the availability of distributed generation in recent years, power can flow in both directions along transformers and mainlines in the traditional distribution networks. This makes it difficult to calculate power losses in active distribution networks and correct transactions between generators and users. In this paper, we propose the concept of Virtual Contribution Theory and construct a virtual contribution matrix to illustrating how generators and loads use and occupy distribution networks. By combining Virtual Contribution Theory with Power Flow Tracing, a bidirectional loss allocation method based on the Virtual Contribution Theory is proposed to account for power losses in active distribution network. One key advantage of this method is that it eliminates many shortcomings of traditional loss allocation method, including cumbersome calculation processes, low solution efficiency, and limitations in bidirectional power flow calculations. This method can also fairly allocate power loss between generators and loads in the retail electricity market. We conducted tests on IEEE 33 and IEEE 69 systems to evaluate the feasibility and effectiveness of the proposed method.