An overview on network cost allocation methods

This work is devoted to study and discuss the main methods to solve the network cost allocation problem both for generators and demands. From the presented, compared and discussed methods, the first one is based on power injections, the second deals with proportional sharing factors, the third is based upon Equivalent Bilateral Exchanges, the fourth analyzes the power flow sensitivity in relation to the power injected, and the last one is based on ZbusZbus network matrix. All the methods are initially illustrated using a 4-bus system. In addition, the IEEE 24-bus RTS system is presented for further comparisons and analysis. Appropriate conclusions are finally drawn.