Comparison of Transmission Loss Allocation Methods in Deregulated Power System

The problem of Transmission Loss Allocation (TLA) among the power system agents has become more important with the increase of the competition level in electricity markets. In this paper different Transmission Loss Allocation methodologies are considered. The comparison between them, which is not available in the literature, has been made. The methods considered in this paper are; Postage Stamp (PS), Proportional Sharing Principle (PSP) and Loss Function Decomposition (LFD) methods. Algorithms have been implemented for these methods. These methodologies are illustrated on IEEE 5-bus system and IEEE-14 bus system. The theoretical values are verified with the simulation results obtained from the MATLAB programming.