Loss allocation in distribution systems considering system power factor and local generators

In the context of a deregulated electricity market, this paper presents a new method for the distribution of electrical losses in distribution systems with local generators, incorporating variations in consumer power factor. Additionally, the paper examines how local generators may gain the utmost possible advantage from their contributions to system performance enhancement. The proposed approach initially analyzes dynamic changes in active and reactive power flow caused by a change in consumer power factor, followed by a loss allocation mechanism. This method is developed based on Kirchhoff’s law and the natural decomposition of injected bundled power flow at a bus. To completely eliminate cross-subsidies, the proposed mechanism follows a two-stage power flow: first, consumer-controlled power flows, and second, determining variations in power flow as compared to the first stage due to interactions with local generators. Consumer load modeling is being considered to improve the proposed method’s adaptability and efficiency across different distribution systems. The effectiveness of the proposed method is validated through testing on 30-bus and 69-bus distribution systems, and the results obtained are compared with those of other methods found in the literature.