Load-sensitive transmission loss pricing considering wind energy

Although deregulation of power systems in most of the cases is considered as a worthy progress, however, for the operation and maintenance of this brand new environment, the associated new issues have to be clarified and solved. In this paper, a new method for pricing the transmission loss is proposed. The proposed method is fundamentally based on zero cash balance of the market. The idea of this paper for the loss allocation process is to consider and integrate the time of consumption into the cost of allocated losses to one party. That means the price of loss would not be the same as the price of power at same interval. This price of loss is a function of both market clearing price and the time of transmitting power. The method has been implemented and tested on several types of markets and two samples are summarized in the paper. The results show that the method has an acceptable performance in various situations.