Multi-objective optimization and network security enhancement for congestion management in wholesale electricity market

Abstract

This paper presents an effective approach for managing congestion in a power transmission system by optimally placing distributed generators at the load end. Congestion management involves multiple objectives such as elimination of congestion, minimum congestion cost and bus voltage limit violations. DG has been proved as viable source for removing the congestion problem of the transmission system. Optimal placement of DG has been done for decreasing locational marginal price, nodal congestion price thereby maximizing social welfare function and network security in deregulated power system. The multi-objective optimal power flow problem considered here is mainly for achieving balance between social welfare function and network security. Social welfare function relates with value of market which is the summation of producer and consumer surplus whereas network security relates mainly for security of transmission system. The proposed system lowers the overall price paid to market operators by assigning balanced weights to social welfare and network security enhancing the overall system performance.