Distributed Generation Electricity Price Forecasting in a Deregulated Electricity Market

This paper presents a new methodology for optimal placement, size and electricity price of different types of Distributed Generation (DC) considering electricity market price fluctuation. DG is introduced to participate in electricity market comparing with voltage regulator devices and interruptible load, to solve the lacking electric power supply problem with a reasonable price. The problem of optimal placement and size is formulated in two stages; minimization the total cost to find optimal sizing and siting of the different types of DG vs. different investment payback time, and maximization the Global System Benefit (GSB) function to find optimum DG electricity price. In this methodology, cost function is investment costs, which evaluated as Equivalent Annual Cost (EAC), plus to total running cost and GSB function is defined as the difference between global system costs before and after DC installation. Different system conditions are assumed to indicate the effect of the system conditions on planning decision. In this paper, five types of DG are studied. The proposed two-stage model aims to find optimal DC placement and DC electricity price, especially in a deregulated electricity market environment. The proposed methodology is tested in IEEE 30-bus test system by using a developed user-friendly software package. Copyright (C) 2012 Praise Worthy Prize S.r.l. - All rights reserved.