Transmission loss unbundling and allocation under pool electricity markets

This paper presents a methodology based on the circuit theories for unbundling and allocation of transmission losses among the participants of a pool-based electricity market. Starting from a known operation point and using the basic network equations without additional assumptions, an expression of...

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Bibliographic Details
Published in:IEEE transactions on power systems 2006-02, Vol.21 (1), p.77-84
Main Authors: Unsihuay, C., Saavedra, O.R.
Format: Article
Language:English
Subjects:
Circuit theory
Costs
Electric utilities
Electricity supply industry
Equations
Load flow
Loss allocation
pool-based electricity markets
power flow
Power generation
Power markets
Power system economics
Propagation losses
Studies
System testing
transmission losses
transmission open access
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Summary:This paper presents a methodology based on the circuit theories for unbundling and allocation of transmission losses among the participants of a pool-based electricity market. Starting from a known operation point and using the basic network equations without additional assumptions, an expression of the branch losses based on nodal current injections is derived. Since the power flow equations and circuit theories are satisfied, the methodology turns explicit, in a natural way, separating the losses at each system branch and assigning the responsibility to the respective market participants. It means that the loss allocation of each branch, which is produced by each generator and consumer, is obtained. Extensions and strategies considering unsubsidized and predefined proportion-based loss allocation as well as issues related with the allocation fairness and transparency are also included. Comparisons with previous methods and validation tests of the proposed method are reported by using the IEEE Reliability Test System.
ISSN:0885-8950
1558-0679
DOI:10.1109/TPWRS.2005.857838