Optimal DG placement in deregulated electricity market

Gautam, Durga and Mithulananthan, Nadarajah (2007) Optimal DG placement in deregulated electricity market. Electric Power Systems Research, 77 12: 1627-1636. doi:10.1016/j.epsr.2006.11.014

Author Gautam, Durga
Mithulananthan, Nadarajah
Title Optimal DG placement in deregulated electricity market
Journal name Electric Power Systems Research   Check publisher's open access policy
ISSN 0378-7796
Publication date 2007-10
Year available 2006
Sub-type Article (original research)
DOI 10.1016/j.epsr.2006.11.014
Volume 77
Issue 12
Start page 1627
End page 1636
Total pages 10
Place of publication Lausanne, Switzerland
Publisher Elsevier Sequoia
Language eng
Subject 09 Engineering
0906 Electrical and Electronic Engineering
Abstract This paper presents two new methodologies for optimal placement of distributed generation (DG) in an optimal power flow (OPF) based wholesale electricity market. DG is assumed to participate in real time wholesale electricity market. The problem of optimal placement, including size, is formulated for two different objectives, namely, social welfare maximization and profit maximization. The candidate locations for DG placement are identified on the basis of locational marginal price (LMP). Obtained as lagrangian multiplier associated with active power flow equation for each node, LMP gives the short run marginal cost (SRMC) of electricity. Consumer payment, evaluated as a product of LMP and load at each load bus, is proposed as another ranking to identify candidate nodes for DG placement. The proposed rankings bridges engineering aspects of system operation and economic aspects of market operation and act as good indicators for the placement of DG, especially in a market environment. In order to provide a scenario of variety of DGs available in the market, several cost characteristics are assumed. For each DG cost characteristic, an optimal placement and size is identified for each of the objectives. The proposed methodology is tested in a modified IEEE 14 bus test system.
Keyword Distributed generation
Locational marginal price
Optimal power flow
Electricity market
Social welfare
Distributed generation
Q-Index Code C1
Additional Notes Available online 29 December 2006.

Document type: Journal Article
Sub-type: Article (original research)
Collections: Excellence in Research Australia (ERA) - Collection
School of Information Technology and Electrical Engineering Publications
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Created: Thu, 26 Nov 2009, 14:31:28 EST