Optimal placement and sizing of distributed resources for congestion management considering cost/benefit analysis

Congestion management is one of the most important issues for secure and reliable system operations in deregulated electricity market. This paper presents a cost/worth analysis approach for optimal location and sizing of Distributed Resources (DRs) to mitigate congestion and increase security of the system. In order to reduce the solution space a priority of candidate buses is formed, then optimal location and sizing problem is discussed. To increase the accuracy of results, load duration curve is constituted and based on this curve different load levels are incorporated into this study. Proposed method considers economical factors such as congestion rent, deferred upgrading investment and DR costs. The proposed method is illustrated using IEEE Reliability Test System (RTS) and the impacts of considering different parameters such as load growth rate and different load levels are studied. Obtained results show that the proposed methodology is capable of finding the best location and optimal size of DR that can reduce congestion in the transmission system.