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The penetration of distributed generation (DG) units in the radial distribution network (RDN) introduces complexity in active power loss allocation (LA) as it leads to reverse current in the network. This current makes power system bidirectional and brings difficulties in the decomposition of cross-terms of power loss equation. To overcome such complications, this paper proposes a new branch oriented LA technique which eliminates the impact of mutual-term mathematically from loss formulation without any assumptions and approximations. It establishes a direct relationship between the subsequent load currents of a branch and its two end voltages in terms of the complex power available at its load ends. The proposed LA scheme is found to be fair as regard to the topology of the RDN. Further, the implementation of DGs may increase/decrease power loss of a system. In order to provide the exact amount of loss reduction benefit to the DG owners (DGOs), a new DG remuneration strategy is developed in this paper which assigns either rewards/penalties to the DGOs after analysing their actual impact towards system loss reduction. The effectiveness of the proposed LA method is investigated against various established LA techniques using two different test systems i.e., 17-bus and 33-bus RDNs.

A branch oriented active power loss allocation method for radial distribution networks with distributed generators