An economy-oriented DG-based scheme for reliability improvement and loss reduction of active distribution network based on game-theoretic sharing strategy

Abstract

This paper presents a techno-economic strategy for reliability improvement and loss reduction in active distribution networks and microgrids including distributed generations (DGs). This approach is a theoretical method stand on the determination of locational marginal price in each bus including DGs. In this method, each DG is a player of game theory considering its effect on mitigated loss and enhanced reliability. In this proposed approach, each player receives an economic incentive in case of incremental price using a fair method based on the game theory. To illustrate, DGs that vary their generations with the desired objectives of the network will receive incentives in terms of incremental price in selling energy and obtaining more benefits. Moreover, to attain a feasible realistic structure, the uncertainties of loads are studied. In addition, as an approach for controlling the operation of the network, the suggested approach should supervise the contribution of DGs in incentives allocation which leads to meeting each network’s goals based on their contributions in the pricing approach. Validation of the proposed method is performed based on testing the Taiwan Power Company (TPC) network. The significant outcomes show that the lines loss of the network are reduced by 56% and the reliability improvement percentage is 14%.