Optimal Placement of DG for a Distribution System Operating under Regulated Monopoly

The distribution generation has gained the limelight in network planning, usually, Distribution Company (DISCOMS) are not allowed to own the distributed generation, they can install generation through a Power Purchase Agreement (PPA). This work model a complete information bilevel game between a DISCOM and Distributed Generation (DGENCO). The bilevel game takes the form of the Mixed Integer Bilevel Linear Program (MIBLP), the equilibrium point was found by using a branch and bound method. The competition in the DGENCO market is modelled by limiting profit. The formulation is tested in a 6 bus system.