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A new framework of marginal loss factors with consideration of the electrical distance

This paper presents a new framework for the evaluation of marginal loss factors (MLFs) to reflect the electrical distance. MLFs, basically is represented as the sensitivity of transmission losses due to the increment of the generation or load at a specified bus, which can be varied according to the relationship on the electrical distance between a generator(s) and a load(s). In the pool-dominated electricity markets, the exact information on MLFs plays an important role in providing proper the locational signals with market players as well as in performing correct settlement between buyers and sellers. In this paper, we have suggested a general framework for obtaining MLFs encompassing a variant of assumptions on electrical distance between generator(s) and load(s) based on the AC sensitivities of energy balance equations and transmission distribution factors such as generalized generator distribution factors (GGDFs) and topological generator distribution factors (TGDFs). The suggested methodology has been applied to a test system with 5 buses and the modified AEP 14 bus system to demonstrate its effectiveness.