Locational marginal price based optimal placement of DG using stochastic radial basis function

Abstract

The electricity market (EM) plays a dynamic part in the economics of the electrical power system. An electricity market is a marketplace where buyers and sellers interact with each other. Buyers want to buy the electricity at the lowest price and seller wants to sell the electricity at the maximum price. In this process, the location of the generating unit in the transmission network (TN) from the transmission point of view plays an important role that maximizing the Distributed Generation (DG) owners’ economic benefit is carried out in the electricity market. In this paper, the authors have identified the location of DG based on locational marginal price (LMP) in order to improve the social welfare and voltage profile. LMP implies the price to buy and sell power at various positions within wholesale electricity markets. After finding LMP on each bus, the DG will be placed at the bus where LMP is highest. Stochastic-based radial basis function (SRBF) has been used for achieving the optimal placement of DG in the TN. SRBF algorithm predicts and endeavours to find precise solutions for minimisation problems. The results of the proposed method have been validated on 6 and 14 bus transmission systems.

KEYWORDS:

• Distributed generation (DG)
• locational marginal price (LMP)
• deregulated market (DM)
• stochastic radial basis function (SRBF)
• transmission network (TN)
• optimal power flow (OPF)

Disclosure statement

No potential conflict of interest was reported by the author(s).