Virtual Contribution Theory-Based Bidirectional Loss Allocation Method for Active Distributed Networks

Loss allocation plays a pivotal role in power transmission and distribution services as it is integral to the reconciliation process between generator-user settlements. The advent of distributed generation over the recent years has introduced bidirectional power flow along transformers and mainlines in conventional distribution networks, complicating the calculation of power losses and the rectification of transactions between generators and users. In this study, we introduce the Virtual Contribution Theory, constructing a virtual contribution matrix to elucidate how generators and loads utilize and occupy distribution networks. By integrating this theory with Power Flow Tracing, we present a novel bidirectional loss allocation approach rooted in the Virtual Contribution Theory, designed to account for power losses in active distribution networks. This method offers significant advantages over traditional loss allocation methodologies by mitigating various shortcomings such as complex calculation processes, low solution efficiency, and limitations in bidirectional power flow computations. Moreover, it enables fair allocation of power losses between generators and loads in the retail electricity market. To validate the effectiveness and feasibility of our proposed approach, we carried out tests on IEEE 33 and IEEE 69 systems.