Improved Z-BUS loss allocation method

An improved Z-BUS loss allocation method - RD-ZBS is presented, and its applications to two different power markets are considered. In pool market, the loss parcels of the generation nodes are redistributed to the load nodes according to the financial balance of total system. Therefore the main disadvantage of Z-BUS method, no flexibility to select the loss shared bus, is overcome. Under bilateral model, the redistribution of generation loss parcel is the responsibility of each generation company who reallocates the loss parcel to its corresponding bilateral contracts. The result of RD - ZBS under bilateral model can reflect not only the network topology' but also the network relationship between both sides of the bilateral contract. Through the comparisons of RD-ZBS with several other loss allocation methods, it is proved that RD-ZBS is a fair and reasonable loss allocation method.