Loss allocation in restructured radial distribution networks considering the contractual power

The importance of loss allocation (LA) methods in the restructured radial distribution network with the presence of distributed generations which are applicable in the electricity market is indisputable. This study presents a new method of LA which is composed of two parts. First, a participation matrix is defined in order to determine which buses have an impact on the loss of each branch. In the second part, the loss share of participants in each branch is calculated based on the injected current to each one. The allocation of cross terms between participants' currents is computed according to their contractual power which increases the economic adeptness of the method. The proposed LA method was empirically validated using a 33-node distribution network and results were compared against other methods. The results demonstrate the compatibility of the proposed method with the technical and economic perspective of the network.