Optimal DG placement under Standard Market Design using GA

Abstract

This paper presents a novel methodology for optimal placement of Distributed Generation (DG) in an Optimal Power Flow (OPF) based wholesale electricity market. DG is placed in real time wholesale electricity market. The problem of optimal placement including size is formulated for two different objectives, namely, fuel cost reduction and to provide voltage stability at distribution level. DG reduces the cost of electricity to the costumer, relieve network congestion and provide environmental friendly energy close to load centers. The candidate locations for DG placement are identified on the basis of locational marginal price (LMP). OPF is widely used for both the operation and planning of a power system. The key feature of standardization of restructured power market like Standard Market Design (SMD) is the LMP scheme. OPF problem by placing DG in Deregulated Environment is solved using Genetic Algorithm (GA). The proposed methodology is tested with IEEE 30 bus test system.