Supply contract management through the optimal dispatch of distributed generation

This study aims to development of a methodology is minimize contracting costs of energy use and cost of the transmission system, from the optimal dispatch of Distributed Generation (DG). It's presents a model of optimal dispatch of Small Hydro Power (SHPs) in distribution systems based on Genetic Algorithms (GAs) multiperiod, which evaluates the financial impact of SHPs on utility supply contract. In our model, it is considered a market scenario in which the license may decide to purchase energy from the wholesale energy market through the substation or, alternatively, the units of SHPs allocated in your network. The developed methodology is applied to the case study in a small supply, located in southern Brazil. The results show that the optimal order of SHPs can improvement significantly reduce costs of purchasing energy use of the system.