Optimal allocation of renewable DG for reliability improvement and losses reduction

This paper presents a methodology to evaluate the cost of energy losses and the cost of interruption in distribution networks with renewable distributed generation (DG) connections. Moreover, it presents a renewable DG allocation planning algorithm to determine the optimum locations and sizes of DG units in distribution network for reliability improvement and energy losses reduction. The proposed approach takes into consideration customers´ sectors, load variation, stochastic nature of renewable DG, and variable hourly cost of energy. The allocation planning problem is defined as mixed integer nonlinear programming problem, where genetic algorithm (GA) is utilized. Using the proposed approach, the distribution companies can determine optimum sizes and locations of DG units in their systems; besides, the expected reduction in the energy losses and outages costs.