Development of a New Loss Prediction Method in a Deregulated Power Market using Proportional Sharing

The advent of worldwide deregulation of power industry and unbundling of
transmission services have resulted in the need to measure the flow of power
primarily for pricing and tariff purposes. Reliable analysis and prediction of electrical
losses is therefore attracting more attention than ever for efficient power system
management.
This report first presents the background for deregulation energy power
industry, comparing both traditional utility structure and the deregulated market
model. Problems arise when new transmission loss allocation method is strictly
needed for promoting fair competition in deregulated power market, which lead to the
determination of the objectives and scope of study. Literature review is then done to
discuss nodal pricing in current deregulated markets, which followed by discussion
on several existing loss allocation methods. Then, the response of each individual
generator in IEEE 24-bus RTS to change in demand and the corresponding associated
losses are also presented in the result and discussion section. Corresponding losses to
each bus using different loss allocation methods are then plotted for critical analysis.
Eventually, the loss allocation method which provides better indicative measure to
promote efficient network usage will be adopted for loss prediction.
To date, a novel approach for the loss prediction has been developed for the
deregulated power market with the insight from Euler's Method. The effectiveness of
the proposed approach is demonstrated by visual comparison and strict statistical
criterion and the results suggest that it proves to be astoundingly accurate for the
prediction of system losses and the associated bus losses.· MATLAB with
matpower4.0b extension was used to present the study on IEEE 24bus RTS and a
larger IEEE 57bus test case.