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Open Access Research Article

Optimal placement of distributed generator in competitive electricity markets based on mitigation of GENCOs’ market power and congestion management

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pp. 1949–1967Vol. 29Issue 6June 2026DOI: 10.47974/JIM-2416XML
Received:
01 Jun 2025
Published Online:
22 May 2026
Article type:
Research Article
Language:
EN
Article no.:
JIM-2416
Pages:
1949–1967

Abstract

This paper presents an innovative two-level optimization framework for optimal placement of distributed generators (DGs) in competitive electricity markets, with a focus on mitigating market power and managing transmission congestion. The first level maximizes social welfare considering load flow, generator, and transmission constraints, while the second identifies strategic DG locations that reduce surplus gains of GENCOs exploiting congestion. The methodology is validated on the IEEE 118-bus system, demonstrating improved market fairness, reduced congestion, and enhanced system reliability. Comparative analysis with conventional methods shows that the proposed approach more effectively addresses individual GENCO behaviour, supporting a more efficient, equitable, and competitive electricity market environment.

Keywords

Subject Classifications

91B74

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