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The transmission loss factors play a vital role in determining the loss component of the Locational Marginal Price. If single slack bus power flow approach is used, then the component for loss in Locational Marginal Price is found to vary exorbitantly whenever the slack bus changes. This paper proposes a Participant Based Distributed Slack Power Flow model where the losses are distributed to each participant instead of each bus. Using the Jacobian Matrix of the Participant Based Distributed Slack Power Flow model participant based transmission loss factors are calculated which are slack bus independent and are obtained using a unique reference point. These loss factors overcome the problem of variations of loss component in Locational Marginal Price due to changes in slack bus. These loss factors are more suitable for competitive deregulated power market since it is calculated with respect to each participant and is different from existing techniques which calculates loss factors for each bus. This paper proposes the mathematical formulation of Participant based Distributed Slack Power Flow model and the calculation of Participant based loss factors. Case studies carried out using radial five bus system and IEEE 30 bus system indicate the effectiveness of the proposed model.

Calculation of Participation Based Loss Factors using the Concept of Market Center in a Deregulated Power System