Combined Heat and Power (CHP) Allocation and Capacity Determination According to Fuzzy Bus Thermal Coefficient and Nodal Pricing Method using Cooperative Game Theory

In this paper a hybrid and practical method is provided to allocation and capacity determination combined heat and power (CHP) generator at a bus. This method consists of two stages. Firstly, Through the bus thermal coefficient, the suitable buses will be found for CHP installation. This coefficient indicates the possibility of heat selling around each buses and will be calculated using the fuzzy method. Then, for the appropriate buses, considering the obtained heat capacity and electrical power to heat ratio of CHPs on the market, several CHPs is recommended. Secondly, On the one hand, the amount of loss reduction and improve the voltage due to proposed CHPs installation using nodal pricing method as financial benefit of distribution company to be derived, and on the other hand, the financial benefit for investors by selling CHP heat output is determined Finally, using the Game Theory and consider the distribution company and investors as players, the suitable location and capacity for CHP installation based on the Game strategy set is obtained. The proposed method, is implemented to a sample distribution feeder in the Hamadan city and the results are shown.