Placement and sizing evaluation of distributed generation in electric power systems

This paper presents a methodology for the placement and sizing evaluation of distributed generation (DG) in electric power systems. The candidate locations for DG placement are identified on the bases of Locational Marginal Prices (LMP´s) obtained from an optimal power flow solution. The problem is formulated for two different objectives: social welfare maximization and profit maximization. For each DG unit an optimal placement is identified for each of the objectives.