Combined Heat and Power (CHP) Allocation and Capacity Determination According to Fuzzy Bus Thermal Coefficient and Nodal Pricing Method using Cooperative Game Theory

In this paper a hybrid and practical method is presented to allocate and determine combined heat and power capacity (CHP) generator at a bus. This method consists of two stages. First, the suitable buses for CHP installation will be found by the bus thermal coefficient . This coefficient indicates the possibility of the heat selling around each bus and will be calculated by using the Fuzzy method. Next, for each of the appropriate buses, considering the obtained heat capacity and electrical power ratio to the heat of the CHPs in the market, several CHPs are recommended. Second, on the one hand, the improvement of the technical criteria after the CHPs installation is derived by using the nodal pricing methods as the financial benefits of the distribution companies and on the other hand, the investors’ financial benefits from the sold heat output of the CHPs is determined. Finally, using the Game Theory and considering the distribution companies and investors as the players, the suitable location and capacity for CHP installation based on the set Game strategy is obtained. The proposed method is implemented to a sample distribution feeder in the Hamadan city and the results are shown.