Performance Analysis of the Tau-Value Method for Loss Allocation in Radial and Weakly Meshed Distribution Networks

Subject Areas : Power Engineering

Mohammad Bayat ¹ , Mahyar Abasi ² , Masoud Aghabiglo ³ , Ali Asghar Ghadimi ⁴

1 - Department of Electrical Engineering, Faculty of Engineering, Arak University, Arak, Iran
2 - Department of Electrical Engineering, Faculty of Engineering, Arak University, Arak, Iran
3 - Department of Electrical Engineering, Faculty of Engineering, Arak University, Arak, Iran
4 - Department of Electrical Engineering, Faculty of Engineering, Arak University, Arak, Iran

Received: 2025-03-26 Accepted : 2025-06-21 Published : 2026-09-22

Keywords: Distributed generation, Fair loss allocation, Radial distribution network, Τau-value method, Weakly meshed network,

Abstract :

In modern power distribution networks, traditional methods of allocating losses among participants are becoming inadequate due to the rise of distributed generation and the need for fair loss allocation. This paper investigates the τ-value method for allocating losses resulting from the connection of new consumers and producers in radial and weakly meshed networks. The results show that this method, with its low computational volume and high efficiency, is a suitable tool for loss allocation in restructured networks. It was also found that placing consumers in weakly meshed networks and producers in radial networks is economically and technically preferable. However, the τ-value method imposes stricter loss allocation on consumers, which is due to the initial allocation of losses among consumers. Despite this limitation, this method can be used as an efficient tool in competitive electricity markets. This study demonstrates that the network structure has a significant impact on how losses are allocated, and that the appropriate placement of producers and consumers can lead to reduced losses and improved network efficiency. Furthermore, the use of game theory-based methods such as the τ-value can contribute to fairer loss allocation and create healthy competition in the electricity market.

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