Loss minimization in distribution systems based on LMP calculation using honey bee mating optimization and point estimate method

Locational marginal price (LMP) calculation at distributed generation (DG) busses is an effective way for optimal operation of DG units. The aim of this study is presenting a new LMP formulation which includes distribution loss minimization. A Meta-heuristic modified honey bee mating optimization (MHBMO) algorithm is used to obtain optimal values of LMP and power factor of DG units so that the loss of network is minimized, and the benefit of DG units is maximized. Furthermore, a stochastic power flow based on the point estimate method (PEM) is located in MHBMO algorithm to capture uncertainty in the market price and load demand. The proposed policy is applied to a realistic distribution system for the various market prices at substation buses. The results of this study prove the accuracy and efficiency of the new method over the previous methods in terms of the DG units' benefit, loss minimization, and state estimation of the system. - Highlights: • A new LMP calculation policy is developed in the distribution networks. • Using the new LMP calculation policy, the loss of the network is minimized and the benefit of the DG units is increased. • The uncertainties of the system is modelled to calculate the stochastic LMP.