Optimal choice of bilateral contract transaction for minimizing total transmission loss

Abstract

Deregulation has significantly changed the way present day power systems operate. With economics being the driving force behind the introduction of deregulation, transmission loss minimization has added importance. This paper presents two approaches to determine the optimal bilateral transaction from the point of view of minimizing the total transmission loss. One is based on the load flow and the other uses the loss formula, which does not resort to any online load flow computation. This makes it much superior in terms of computation speed. In spite of the assumptions involved, the loss formula based approach pinpoints the optimal transaction. Results are presented for four test systems.