Unbundling flows and losses in restructured power systems

Restructuring of power systems around the world has created a need for new analytical methods which would better suit its requirements. In unbundled systems total costs and service charges of electricity being provided to customers are required to be shared. Current analytical techniques are not designed for allocation of these financial components among the stake holders. Many of them adopt additional heuristic procedures or employ decomposition techniques for separation of flows and losses for allocation of various costs. Regulatory bodies have to depend on these for resolving financial conflicts. In this paper we incorporate decoupling in the power system description right in the beginning of the formulation. A new concept of Kirchhoff state is defined for each generator, which decouples its contribution to the system from all other generators. Using Kirchhoff state of a generator, the unbundling of losses and flows in lines, and hence corresponding cost allocations are greatly simplified. The method is suited for parallel computation.