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In this paper, a new loss allocation method in restructured power systems is proposed. The method is appropriate for active and reactive loss allocations. This method can also be used for allocation in both bilateral and pool-based markets. The basic idea of this method is to calculate the contribution of each transaction on the system losses by deactivating it. The share of each transaction from total active and reactive losses of the network is estimated. Furthermore, we will discuss how the participants would affect the system’s loss. Are they supporting the network by reducing the total losses or not? This method is tested on different test systems, but due to space limitation, only the results of proposed method on IEEE 14, 24 and 118-bus test systems are presented and discussed. Furthermore, different parameters effects such as the location of slack bus and load condition are investigated. The proposed method has appropriate results in all conditions.

Topological based active and reactive power losses allocation method in both pool and bilateral-based electricity markets using power flow