Loss reduction allocation to distributed generation units in distribution systems

This paper proposes a novel loss reduction allocation method in distribution systems in the presence of distributed generation (DG) units. The proposed method aims to procure the participation of each DG unit in the reduced amount of energy losses in distribution systems brought about by participation of all DG units in power market. The method is based on the assumption that DG units have private owners; hence, it provides a proper solution for distribution companies to have a fair incentive to specify which DG units are more beneficial to them. Two cooperative game theory approaches namely Shapley Value and ^tau Value methods are applied in order to provide fair and stable models for loss reduction allocation in distribution networks. Consistent and stable results qualify the equity and validity of the method.