Novel approach for loss allocation of distribution networks with DGs

Abstract Due to liberalization of electricity market and competition among generating companies, the allocation of distribution network losses has become a challenging task. This paper presents a new method for loss allocation in radial distribution network (RDN) with distributed generation (DG) in context of restructured power system. The proposed method is a circuit based branch-oriented approach and employs a current summation algorithm for loss allocation. It establishes a direct relation between injected current at node and power loss in the branch. Real and reactive components of the current through a branch are decomposed into sum of real and reactive components of DG and load currents connected ahead of it. Cross-terms representing the mutual relation among network participants are allocated by adopting the logarithmic scheme of allocation. In order to show the effectiveness of the proposed method, it has been tested on three different load levels of 33-node RDN, and the obtained results are compared with those by other methods.