Transmission Loss Allocation Based on Power Adjacency Matrix in Pool Electricity Markets

In a deregulated electric power system, it is important to distribute transmission losses between market participants fairly. This paper presents an effective method for active loss allocation by tracing power flow. In this method, after obtaining the alternating current (AC) load flow results of the system, it is first converted to a system in which the power flow is constant along each branch. A new matrix (i.e.,power adjacency matrix) is then constructed for the system. The matrix is decoupled, and matrix operations are carried out using the submatrices to derive three other matrices. The contributions of the generators and loads of the main system to active losses of its branches and the shares of the generators in active power consumption of the loads are specified using these matrices. The proposed method is implemented on a four-bus system and several standard test systems. The results show that the method can be applied to any transmission system, and the loss allocation results are preferable to that of previous methods.