Improved loss distribution and modeling in DCOPF

Marginal loss modeling in DCOPF has been used to overcome the drawback of neglecting losses in the lossless DCOPF model. Various models have been proposed in literature that incorporate losses in different ways. However, there has been no unique way of distributing the losses across the network. The approaches suggested in literature have some arbitrariness in distributing losses. Since change in loss distribution can lead to different solutions, a clear rationale is required in this regard because it has financial implications. In this paper, we explore the use of location based schemes, traditionally used for transmission pricing and/or loss allocation, to overcome the arbitrariness in loss distribution for various models proposed in literature. We define performance metrics for comparison with ACOPF, which provide benchmark results. Better performance indices for line power flows and Locational Marginal Prices (LMPs) is observed when choosing loss distribution using the proposed method.