Strategic placement of distribution network operator owned wind turbines by using market‐based optimal power flow

In this study, a new methodology to optimally allocate wind turbines (WTs) in distribution networks is proposed. A market-based optimal power flow is used to determine the optimal numbers and capacities of WTs in a way that maximises the social welfare. The method is conceived for distribution network operators to strategically allocate WTs in distribution networks. The proposed method by yielding location-specific WTs capacity settlement both in terms of cost reduction and consumers' benefits is consistent with distribution network topology and constraints. The method is solved by using step-controlled primal dual interior point method considering network constraints. The effectiveness of the proposed method is demonstrated with two radial distribution systems including an 84-bus 11.4 kV and a 69-bus 11 kV network.