Current summation based approach for loss allocation with distributed generation

Active power generation and its related costs are considerable affected by the distribution network losses, and thus electricity market requires suitable strategy for fair allocation of losses among network participants. Therefor for fair allocation of active losses in radial distribution network (RDN), a new strategy has been proposed in the paper. The proposed method is based on the current summation algorithm and adopted a branch-oriented approach. It also develops a relationship between current injected at a node and feeder power loss. Allocation of cross-terms of consumer/generator current is calculated using quadratic relation between power flows and losses. The advantage of the proposed method is that it does not consider any approximation to allocate the losses. The proposed method is tested on a modified 33-node RDN and its results are compared with those of other methods available in the literature.