A Scatter Search Heuristic for the Optimal Location, Sizing and Contract Pricing of Distributed Generation in Electric Distribution Systems

Andrés Felipe Pérez Posada, Juan G. Villegas and Jesús M. López-Lezama
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Andrés Felipe Pérez Posada: Celsia S.A. E.S.P., Carrera 43A No. 1sur-143, Medellín 050022, Colombia
Juan G. Villegas: Supply Chains Management and Innovation Research Group (INCAS), Department of Industrial Engineering, Universidad de Antioquia, 67th Street, No. 53-108, Medellín 050110, Colombia
Jesús M. López-Lezama: Research Group in Efficient Energy Management (GIMEL), Department of Electrical Engineering, Universidad de Antioquia, 67th Street, No. 53-108, Medellín 050110, Colombia

Energies, 2017, vol. 10, issue 10, 1-16

Abstract: In this paper we present a scatter search (SS) heuristic for the optimal location, sizing and contract pricing of distributed generation (DG) in electric distribution systems. The proposed optimization approach considers the interaction of two agents: (i) the potential investor and owner of the DG, and (ii) the Distribution Company (DisCo) in charge of the operation of the network. The DG owner seeks to maximize his profits from selling energy to the DisCo, while the DisCo aims at minimizing the cost of serving the network demand, while meeting network constraints. To serve the expected demand the DisCo is able to purchase energy, through long-term bilateral contracts, from the wholesale electricity market and from the DG units within the network. The interaction of both agents leads to a bilevel programming problem that we solve through a SS heuristic. Computational experiments show that SS outperforms a genetic algorithm hybridized with local search both in terms of solution quality and computational time.

Keywords: bilevel programming; distributed generation (DG); scatter search (SS); evolutionary algorithms (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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