Distribution Network Reconfiguration Considering Nodal Pricing

In this paper, a novel Distribution Network Reconfiguration (DNR) method for the cost effective operation of the Distribution Network (DN) is presented. We focus on the maximization of the welfare of the consumers and producers connected to the DN, where we consider that nodal pricing is applied on the Transmission System (TS) and as a result the price of purchasing or selling energy varies per HV/MV substation. The proposed model initially focus on the consumers’ cost minimization and the producers’ profit maximization separately and it is extended to a multi-objective problem taking into account both objectives simultaneously. For this problem, the Pareto Front solutions are computed, which indicate the trade-off between consumers’ cost and producers’ profit in each optimal network topology. The results of the proposed algorithm are very promising since either a reduction of cost of 2.87% or a profit increase of 7.69% are achieved.