Abstract: One of the major problems in liberalized power
markets is loss allocation. In this paper, a different method for
allocating transmission losses to pool market participants is
proposed. The proposed method is fundamentally based on
decomposition of loss function and current projection concept. The
method has been implemented and tested on several networks and
one sample summarized in the paper. The results show that the
method is comprehensive and fair to allocating the energy losses of a
power market to its participants.