A new method for transmission loss allocation considering the circulating currents between generators

A new method is presented for transmission loss allocation based on the separation of transmission loss caused by load and the loss due to circulating currents between generators. The theoretical basis for and derivation of the loss formulae are presented using simple systems. The concept is then extended to a general power system using the Ybus model. Details of the application of the proposed method to a typical power system are presented along with results from the IEEE 30 bus test system. The results from both the small system and the standard IEEE test system demonstrate the validity of the proposed method.