Impact of Multiple DG penetration in Energy Market

This paper presents the techno-economic benefits of committing single and multiple Distributed Generations (DGs) in the deregulated power market along with their impact on nodal prices. In a deregulated power system due to Transmission Open Access (TOA), it becomes an uphill task for Independent System Operators (ISO) to maintain security and reliability of power system. The DG implementation improves the efficiency of the system by reducing the energy cost. This paper analyses the contributions of single and multiple DGs with different cost functions in the electricity market. The objective of this work is to minimize the total generation cost with conventional and distributed generation along with maximum DG profit. The favorable location for DG incorporation is identified by Linear Programming Optimal Power Flow (LPOPF). The higher LMP method is used to find the candidate location for DG placement. The proposed methodology for the penetration of multiple DG is based on the ratio of the LMPs of the candidate node. The Type1 DG is considered in this study, i.e. can feed in both active and reactive power. The study is performed on the IEEE WSCC 9 bus system.