Economic Incentives for Distribution Network Optimization with Distributed Generation

This paper presents a method for the optimal siting and sizing of the penetration of the Distribution Generation (DG) in the distribution network optimization. The optimization uses Differential Evolution (DE) tool based on the network use of system pricing, so that proposed new objective function can be minimized. Combining with network pricing, the values of objective function cost components should provide the correct price signals for the optimal use of a distribution network, especially when the network integrates DG. Through a 79-bus radial urban network study, the scenarios´ models (with or without DG) are carried out to calculate the reinforcement cost and total system losses cost, then incorporate with DGs investment cost to investigate the economical DG´s location and capacity based on the proposed new objective function and its constraints. Based on the proposed optimal approach, an efficient objective function to estimate the siting and sizing of DG is being validated.