Search algorithm for optimal locations of generation units in liberalized power systems

A location decision for a generation unit in a pre-liberalized monopoly energy market was made due to generation costs and transmission costs for electrical energy. A location decision in a liberalized energy market bases on location-dependent investment costs and generation costs without consideration of a location-dependent impact on transmission costs as long as no location signals for generation units are implemented. Location signals create incentives for macro economical efficient locations for generation units. Market exogenous locational signals therefore require a basis for parameterization. It is necessary to identify macro economical efficient location for generation units to create efficient incentives. This paper presents an optimization approach to identify optimal locations for generation units based on a macro economical assessment of locations for generation units. The assessment method of locations for generation units considers the location-dependent impact on transmission costs as an efficient combination of power redispatch and transmission network reinforcement measures. The assessment method also considers the location-dependent optimal generation dispatch. The search algorithm for optimal locations for generation units bases on a particle swarm optimization approach.