The allocation of transmission losses in an open system operating under both pool and bilateral contracts is analyzed using the method of differential loss allocation. This approach allows to consider loss supply as marketable product since each bilateral contract can chose its more appropriate loss supplier. The relative time-dependence of the various contracts including those with the pool are shown. It is also studied the relative influence of implementing bilateral contracts on the pool dispatch performance. The theory is presented together with a number of numerical examples.
Open access; transmission loss allocation; combined pool and bilateral transactions
