Comparison of Graph Theory Approach with other Methods on Transmission Loss Allocation Problem in Deregulated Electricity Market

In a deregulated electricity market the generating and distribution companies enter into various levels of contracts for primary energy transaction. In real time, the losses due to these contracts must be economically supplied by Independent system operators (ISOs). Graph Theory is employed in many fields of engineering especially in transmission loss allocation problem to formulate a given network’s behavior. Graph theory based loss allocation method gives satisfactory results over the other existing methods in terms of technical suitability and various transactions. Loop based representation approach is used for the network formulation. Compared to other loss allocation methods, this method distributes losses to the different participants in a lucid manner. In this paper, a comparison of graph theory based loss allocation method over the other existing methods like proportional sharing, Z bus and modified Z bus loss allocation is made. The results are shown for a sample 4 bus system and IEEE14 bus system. The simulation is carried out using MATLAB (R 2014a).