A new graph theory based loss allocation framework for bilateral power market using diakoptics

Abstract Deregulation and privatization of power market worldwide has forced to identify the different ancillary services and the service providers so that all the services can be priced properly. Active power loss is a component that can never be avoided and constitutes a considerable part of economy. Hence, identification of the sources of active power loss is very important. In deregulated power market bilateral power trading plays a very important role where the amount of power and the flow path between the transacting generators and loads are fixed beforehand. But the power flow rarely follows contracted path, it flows according to physical property of the network. Graph theory based loss allocation methods are based on power flow paths and hence are more reliable. But proper transaction based power flow is not available and it makes graph theory based loss allocation for bilateral market a complex task. Present paper applies diakoptics algorithm to find out the loop flows that is the deviation from contracted path for each bilateral transaction which in turn allows finding out the loss allocated to any transaction. Diakoptics is a general concept in which larger problems are solved by dividing the larger problem into smaller problems and then finding out the overall solution by considering the solutions of each smaller problem together. The proposed method is applied to different test systems and results are discussed in detail.