Improved Z-bus loss allocation method through redistribution

This paper presents a redistribution loss allocation method for improving Z-Bus loss allocation. In the Pool model it redistributes the loss fractions of generation buses assigned in Z-Bus loss allocation to the load buses. As a result, the proposed redistribution method overcomes the main drawback of the Z-Bus allocation - no flexibility to select the bus where the loss should be assigned. In most instances, the redistribution method can eliminate the negative loss allocation. Under the Bilateral model, the redistribution method reallocates the generation loss fractions to their own bilateral contracts. During this procedure, the pool transactions under the bilateral model are considered. By applying this method in bilateral model, the reflections of network topology and network relationship between the both sides of bilateral contracts are taken into account.