Distributed generation placement for congestion management considering economic and financial issues

Congestion management is one of the most important functions of independent system operator (ISO) in the restructured power system. This paper presents two new methodologies for optimal sitting and sizing of distributed generations (DGs) in the restructured power systems for congestion management. The proposed methodologies are based upon locational marginal price (LMP) and congestion rent that forms a priority list of candidate buses to reduce the solution space. The proposed priority list facilitates the optimal placement as well as the level of output power of DGs. The proposed methods are implemented on the IEEE 14-bus and IEEE 57-bus test systems to illustrate their effectiveness. An economic consideration of DG placement and its operation is also studied. Simulation studies and results analysis show that the proposed methodologies are capable of finding the best location and optimal size for DGs, which can alleviate congestion in transmission systems.