Optimal location and quantum of DG in a multi-feed system with varying LMPs

Amendment of Electricity market from vertically integrated environment to deregulated environment necessitates the consideration of locational marginal price (LMP) while evaluating the optimal location and quantum of DG in a distribution system. In this paper optimal location and quantum of DG are found considering varying load in the system, varying locational marginal prices of each feeder and optimal reconfiguration of the system. The solution of DG obtained for one snapshot of load and LMP may not be the same for other snapshot. It would thus be better to perform the analysis of DG placement considering the overall benefit achieved over the period of interest by optimally placing the DG in a given distribution system. Genetic algorithm is used to solve the DG placement problem based upon cumulative cost of power purchased by the system over a period of interest for varying loads and locational marginal prices. The proposed approach is applied to a multi-feed distribution system for three different cases of LMP and the results obtained are analyzed.