DG allocation based on modified nodal price with consideration of loss and reliability using PSO

This paper proposes a multi objective optimization to determine the optimal size and location of distributed generation in the distribution network to minimize load supply cost and enhance reliability improvement. In this paper the cost of DG investment, maintenance and operation is considered as well as the benefits of load supply cost reduction and reliability improvement. Also a new method is proposed in this paper to determine the nodal price. This nodal price is used to determine the actual value of load supply cost reduction. Finally particle swarm optimization is used to solve the optimization problem.