Transmission loss allocation in a multiple-transaction framework

A new method, which allocates losses to individual power transactions in a multiple transaction setting, is presented. The derivations for the allocated losses directly follow the system loss formula and do not make any simplifying assumptions. It explicitly expresses the losses in terms of individual transactions, and this leads to a natural separation of system losses among all transactions in the system. A transaction-loss matrix, which illustrates coupling effects between any pair of transactions taking place in the system, is also introduced. Several numerical examples are presented to demonstrate the application of the proposed approach to power systems with multiple transactions.

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