Multi-area Power System Loss Allocation Using Z-bus Method

Interchanging power between power markets in multi area networks causes energy loss in tie lines and the cost of this loss should be allocated to separate areas. The responsibility of one power market for power losses in tie lines becomes worse due to sensitivity of separated power markets to share their networks detailed information with the others. This paper presents a methodology based on Z-bus loss allocation technique to deal with this problem by considering the PV Ward equivalent model of networks, cross border trade information and tie line characteristic as the main sources of information. So there is no need to access detailed information of one market for the others or central international operator (IO). Numerical studies on the proposed method are performed on the standard 118 bus IEEE power system that is divided into three market areas and each area has its own regulation and pricing policy but exchanges power with others. The results show that this scheme is applicable in real systems and is reasonable compared with central loss allocation.