DG Placement and Penetration under Standard Market Design using GA and PSO

Distributed Generation (DG) can help in reducing the cost of electricity to the costumer, relieve network congestion and provide environmentally friendly energy close to load centers. Its capacity is also scalable and it provides voltage support at distribution level. Hence, DG placement and penetration level is an important problem for both the utility and DG owner. The cost of electricity as a commodity depends upon market model. The restructured power markets are slowly maturing with standardizations like Standard Market Design (SMD). The key feature of SMD is the Locational Marginal Pricing (LMP) scheme. The Optimal Power Flow (OPF) has been widely used for both the operation and planning of a power system. The OPF is also suited for deregulated environment. The placement of DG can be considered on the basis of nodal LMPs. To find the optimal size of DG evolutionary techniques GA and PSO has been used. The Optimal Power Flow (OPF) problem by placing DG in Deregulated Environment is solved using Particle Swarm Optimization (PSO) and results compared with Genetic Algorithm (GA). This paper examines placement and penetration level of the DGs under the SMD framework. The proposed approach is illustrated by case study on IEEE 30 bus system . Keywords— Distributed Generation (DG), Genetic Algorithm (GA), Locational Marginal Price (LMP), Optimal Power Flow (OPF), Particle Swarm Optimization (PSO), Standard Market Design (SMD).