Combined Pool / Bilateral Loss Allocation in Electricity Market Using Game Theory

This paper presents a new and practical method for the loss allocation in the deregulation systems. The restructured markets sell the electricity in two main categories; bilateral exchanges and pool based. In reference 1, the losses in bilateral market using game theory has been assigned to each player [1]. The method which is used in this paper investigates the loss allocation in both markets. The deregulated systems are not under control of one person but there are other players such as generators and loads at which every one of such players has to pay the cost for some parts of system loss. The method used in this paper is to be fair the loss allocation. This method is consisted of two different categories; one finding the losses and the other is loss allocation using Game Theory. To test this method, IEEE 14 buses system is put in use. This paper takes the allocation of losses in the hybrid market (Combined Pool / bilateral).