Strategy for optimal location and rating of wind power generator with maximization of social welfare in double auction competitive power market

Abstract

This paper presents a generalized optimal model for determining the location and rating of wind power generation in double auction competitive power market. The optimization technique has been used with an objective to maximizing the social welfare and profit to wind gencos company (WP-GENCO) while consider all system constraints. The performance of any electricity market is assessed by its impact on social welfare, which may be defined as “the difference of the benefit of the energy to society as measured by society's willingness to pay for its demand and the cost of energy.” Each distribution company (Disco) will pay an amount to independent system operator (ISO) for purchase the power and each generation company (Genco) will receive an amount from the ISO to sale the power. The amount to be paid by each Disco and amount to be received by each Genco has been determined by pay as bidding price approach. The social welfare has been then determined based on total payments and receipts. The proposed approach has been applied to modified IEEE 30-bus test system in which bidding at all generator buses and some load buses has been introduced.