Transmission loss allocation in bilateral or multilateral transaction-based markets

In this paper, the problem of transmission loss allocation has been studied and a new method for loss allocation in transaction-based markets has been proposed. To further this end, first transmission line loss equations were used with respect to bus injected currents. The share of each bus from the mentioned transmission line losses was determined. Then, this method was applied to the total network transmission lines. While considering the available transactions, the share of each bus from the total losses was acquired. The proposed method is based on the main network relations and no simplifying assumption has been used. Finally, the proposed method is based on a typical network.