Determination of Private DG Energy Sourced Electricity Purchasing Price by DISCOs with Considering the Capacitor Placement and ENS Costs

After the restructuring and privatization of the electricity industry, the main purpose of the DISCOs is to increase their income, according to the existing laws. The existence of private distributed generation (DG) units in the distribution network and the possibility to buy additional electricity of DG with a less price than the wholesale market, capacitor installation, payment of energy not supplied to customers, the cost of energy losses and voltage drop problem in the distribution network, has created opportunities and challenges for DISCOs that are looking for adopting a suitable strategy for higher profits. In this paper, as the first scenario, it is depicted that when there is no DG unit in the network the increasing in the DISCO’s income is achievable by optimal allocation of both fixed and switched capacitors. In the second scenario, this is done by determination of the maximum acceptable DG energy sourced electricity purchasing price with a known location, and in the third one, by determination of the purchase price from the DG while the locating has been done by the DISCO. Simulation studies are done on a 20kV 18-bus distribution network in Rasht city, and the results are presented at the end.