Time-varying cost of loss evaluation in distribution networks using market marginal price

• An actual circuit and measurements are used to analyze the accuracy of methods.
• The new cost of the feeder losses method is performed to improve accuracy.
• The cost of losses is calculated using the peak load and a calculated load factor.
• The cost of losses is calculated using hourly feeder load and electric energy cost.
• Two different approaches to calculating the cost of these losses were discussed.

In the electric power system planning process, engineers seek to identify the most cost-effective means of serving the load within reliability and power quality criteria. In order to accurately assess the cost of a given project, the feeder losses must be calculated. In the past, it was necessary to estimate the feeder losses based upon the peak load and a calculated load factor for the year. The cost of these losses would then be calculated based upon an expected, fixed per-kW h generation cost. This paper presents a more accurate means of calculating the cost of losses, using hourly feeder load information and time-varying electric energy cost data. This paper attempts to quantify the improvement in accuracy and presents an example where the economic evaluation of a planning project requires the more accurate loss calculation.