Evaluation of Nodal Prices and Revenue of Distributed Generation in Distribution Network Including Load Model

This paper addresses the effect of load models on nodal pricing and revenue generation of distributed generation (DG) in distribution network. Most of the literatures dealing with DGs have assumed loads as constant in their analyses. Since the loads are voltage and frequency sensitive, analysis assuming constant loads will give inaccurate and misleading results. Under deregulation locational pricing of power is popular in the context of transmission system. It is relevant to study the applicability of the pricing strategies in distribution system having distributed generation. It is shown that DG resources obtain more revenue under nodal pricing. It is further established that load models can significantly change the nodal prices and revenue of DG, and presence of DG improves voltage profile all around in the distribution network. The effectiveness of this work is verified through simulation results on a rural radial distribution system under time varying loading condition.