Value-based implementation of distributed generation in optimal power flow

Distributed generation (DG) has emerged as a practical and viable technology for alleviating power system shortages related to generation and transmission inadequacies. The market location and coordination of a selected DG technology is of high importance to engineers and power marketers. This paper develops an approach for coordinating DG on a grid/micro-grid and solves the resource allocation problem in the framework of a voltage stability constrained optimal power flow. Continuation power flow (CPF) was used to determine weak voltage nodes that are vulnerable to voltage collapse as well as determination of the voltage stability margin (VSM). The impact assessment of DG is computed in terms of the added value to the locational marginal price (LMP) differentials between neighboring network nodes as well as across area boundaries. LMP was used to compute the market implications of installing DG sources. The value of DG (or its detrimental impacts) is monitored and the corresponding available transfer capabilities (ATC) of critical interfaces were determined. The feasibility of the developed approach for value-based DG implementation was tested on a 30-bus 330 kV high voltage system model.