Transmission loss allocation using fairness index in deregulated market

Deregulated market provides opportunities to consumer and generator for transparent cost determination. Generator side revolution invites a lot of thoughts and ideas to make electricity market more competetitive. For sustainable market operation, each component issues should be taken care. Transmission line is vital part of deregulated market. Therefore, losses occurring in transmission line should be considered. Cross-term allocation of transmission losses has been done with various ways but none were satisfactory and acceptable to all. Transmission loss allocation to various loads connected from bus or node becomes complex owing to nature of quadratic expression. Quadratic expression of line loss makes it almost impossible to separate loss for various users. This paper presents a new method for transmission loss allocation with consideration of fairness factor. This new method allocates transmission losses in such a way that distribution of a single load in to further various loads does not change overall percentage loss allocation. Proposed method has been tested on IEEE-57 bus system to test result. The proposed method is simple and time efficient.