Benefits of committing Distributed Generation in Energy Market

Abstract

This paper shows the impact of Distributed or Dispersed Generation (DG) on nodal price or Locational Marginal Price (LMP) in Day-ahead Energy Market (DEM) and in Real-time Energy Market (REM). This paper explains the techno-economic benefits of placing DG in energy market. The penetration of DG reduces the generation cost and also improves the system reliability. In this study, the prime location and penetration of DG is determined by Linear Programming Optimal Power Flow (LPOPF). The DG type considered in this study is Typel DG which injects real as well as reactive power to the system. The objective of this study is minimization of total generation cost with maximizing the DG owner profit. This paper also presents that the payment by the loads get reduced by placement of DG. The study is conducted on IEEE WSCC 9 bus system.