Penalty quoted cost approach for loss allocation in a transmission line by considering the mutual inductance

Abstract

In deregulated electricity market, there is a significance of Loss and Cost Allocation due to transmission. The real power loss from the generators and its associated cost is allocated to the concerned parties in a fair manner by Independent System Operator (ISO). In the cost allocation process there is a participation of generators and loads. The effective part of the paper is there is an impact of mutual inductance (MI) which involves in transmission line in transmission cost/loss allocation phenomena for multilateral contracts is illustrated using a test bus system. To determine the effect of mutual inductance penalized quoted cost (PQC) based approach has discussed. Effect of mutual inductance is tested on an IEEE-4bus system. The simulation results are obtained using MATLAB R2014a. The result shows that there is a significant impact on transmission loss due to mutual inductance which cannot be neglected in the Allocation of loss process.