The distribution network operator is usually responsible for increasing the efficiency and reliability ofnetwork operation. The target of active loss minimization is in line with efficiency improvement. However, this approach may not be the best way to decrease the losses payments in an unbundled market environment. This paper investigates the differences between loss minimization and loss payment minimization strategies.
It proposes an effective approach for decreasing the losses payment considering the uncertainties of electricity prices in a day ahead energy market using energy storage systems and demand response. In order to quantify the benefits of the proposed method, the evaluation of the proposed technique is carried out by applying it on a 33-bus distribution network.