A market-based approach for optimal operation of customer-owned DG units in Smart Grids

This study presents a multi-objective model for distribution system operation regarding utility and customer benefits in the smart grid environment. A methodology to purchase power from customer-owned distributed generation (DG) units based on the multi-objective decision making approach is proposed in the paper. The objective of the algorithm is to find the operation schedule of DG units that result in maximum profit for utility and customers at the electricity market, taking into account the technical benefits of DG installation. An improved non-dominated sorting genetic algorithm (NSGAII) is developed to solve the problem. The effectiveness of the proposed model and search method is assessed and demonstrated by numerical studies. The results presented are evaluated in the IEEE 30bus test network.