TY  - JOUR
AB  - Purpose The purpose of this paper is to estimate the locational marginal price (LMP) at each distributed generation (DG) bus based on DG unit contribution in loss reduction. This LMP value can be used by distribution company (DISCO) to control private DG owners and operate network optimally in terms of active power loss.Design/methodology/approach This paper proposes proportional nucleolus game theory (PNGT)-based iterative method to compute LMP at each DG unit. In this algorithm, PNGT has been used to identify the share of each DG unit in loss reduction. New mathematical modeling has been incorporated in the proposed algorithm to compute incentives being given to each DG owner.Findings The findings of this paper are that the LMP and reactive power price values for each DG unit were computed by the proposed method for the first time. Network can be operated with less loss and zero DISCO’s extra benefit, which is essential in deregulated environment. Fair competition has been maintained among private DG owners using the proposed method.Originality/value PNGT has been used for the first time for computation of LMP in distribution system based on loss reduction. Incentives to each DG unit has have been computed based on financial savings of DISCO due to loss reduction. Share of active and reactive power generation of each DG unit on change in active power loss of network due to that DG unit has been computed with new mathematical modeling. The proposed method provides LMP value to each DG unit in such a way that the network will be operated with less loss.
VL  - 12
IS  - 3
SN  - 1750-6220
DO  - 10.1108/IJESM-03-2017-0002
UR  - https://doi.org/10.1108/IJESM-03-2017-0002
AU  - Veeramsetty Venkataramana
AU  - Chintham Venkaiah
AU  - D.M. Vinod Kumar
PY  - 2018
Y1  - 2018/01/01
TI  - LMP computation at DG buses in radial distribution system
T2  - International Journal of Energy Sector Management
PB  - Emerald Publishing Limited
SP  - 364
EP  - 385
Y2  - 2024/04/26
ER  -