Nodal unbundling of transmission losses

This paper presents a new methodology to evaluate and charge system losses shares among market participants on a nodal basis. The approach is based on the assumption that all power injections take place simultaneously, giving rise to loss responsibilities on an a posteriori basis. This requirement enables the method to be used in a clearing house for losses. The formulation utilizes a static power system representation expressed in terms of a nodal admittance matrix in conjunction with a classic power flow. With this formulation, it is possible to derive system losses, evaluated at the slack bus, as a sum of partial contributions due to each injection. Results are reported for two test systems proving that the methodology is able to share system losses in an attractive way thanks to its simplicity and its transparent and equitable basis.