Transmission system loss allocation in hybrid electric power markets

The transmission loss allocation problem in a deregulated electric power system is discussed in this paper and a new method is presented that is applicable on pool, multilateral contract or hybrid energy markets. The main objective is to generalize the formulation proposed in the previous work [12] in order to be applicable in hybrid power markets. Formulations are based on network representing relations and no additional assumption or simplification is considered. Also in suggested method, allocation of losses is assigned to active power buyers and sellers as well as reactive power generators and loads. Numerical test was performed on the 24-bus standard IEEE reliability test system as a hybrid market (comprises of a pool and some multilateral contracts). Simulation results show that this method does not need to consider a slack bus for pool and also makes the contractual power exchange completely independent from loss compensation of pool market.