Placement and penetration of distributed generation under standard market design

Authors

Ashish Agalgaonkar, University of WollongongFollow
S V. Kulkarni, Indian Institute of Technology - Bombay
S A. Khaparde, Indian Institute of Technology - Bombay
S A. Soman, Indian Institute of Technology - Bombay

RIS ID

41464

Publication Details

Agalgaonkar, A. P., Kulkarni, S. V., Khaparde, S. A. & Soman, S. A. (2004). Placement and penetration of distributed generation under standard market design. International Journal of Emerging Electric Power Systems, 1 (1), 1-16.

Abstract

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. This paper examines placement and penetration level of the DGs under the SMD framework. The proposed approach is illustrated by case studies on MATPOWER 30 bus and IEEE 118 bus systems.