Optimal DG placement in power markets from DG Owners ‘perspective considering the impact of transmission costs: A case study in INPS
Authors: Prabeshchandra Neupane, Navaraj Karki
Abstract—In this paper the methodology for optimal placement of distributed generation (DG) in an optimal power flow-based wholesale electricity market is presented incorporating the impact of transmission cost being allocated to DG. DG is assumed to participate in the real time wholesale electricity market and main aim is the maximization of DG owners’ economic benefits. While locating DG, both production cost and transmission cost are taken into account and optimal location is determined by maximizing DG revenue while minimizing the production and transmission cost. The candidate locations for DG placement are identified based on Locational Marginal Price (LMP) or Consumer Payments (CP) which is the product of LMP and load at each load bus. Bialek Upstream and Downstream Tracing factors are used to determine the DG’s share of flow in the transmission network, and transmission cost are allocated using MW-Mile method. A case study based on Integrated Nepal Power System (INPS) is used to demonstrate the applicability and validity of the proposed method.
Keywords— Distributed Generation, Electricity Market, Locational Marginal Price, Optimal Power Flow, Transmission Cost
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Published In: International Conference on Role of Energy for Sustainable Social Development (RESSD-2022)
Date of Conference: 8th-9th August 2022
Conference Location: Bhaktapur, Nepal
Publisher: IEEE Power and Energy Society Nepal Chapter
Cite the paper as:
P. Neupane, N. Karki, “Optimal DG placement in power markets from DG Owners ‘perspective considering the impact of transmission costs: A case study in INPS”, International Conference on Role of Energy for Sustainable Social Development, 8th-9th August 2022, Bhaktapur, Nepal