Transmission services allocation based on self-balance principle

An usage of AC power flow sensitivity factors is exploited in this paper to deal with transmission services allocation under mix markets, based on the self-balance principle proposed. The loss allocated to each bilateral participant is determined by the less of the loss provided by the swing bus generator or replaced with the bilateral own generation. In addition, in order to allocate the loss to the pool participants, an equivalent bilateral exchange method is used to share the pool demands among the generators first, and then the loss allocated to each generator is determined by the difference of the generation for the pool and the demands shared. The components of real power flow on each transmission line due to all participants are then computed after the system loss allocated.