Optimal Distributed Generation Parameters for Reducing Losses with Economic Consideration

Distributed generation (DG) represents a reliable option for solving current major problems of distribution companies, such as load growth, overloaded lines, quality of supply and reliability. Moreover, it has been proven that the additional benefits brought by DG could be substantial if properly used. This paper addresses the issue of optimizing DG planning in term of DG size and location to reduce the amount of line losses in the distribution networks. The optimization methodology, which is based on the sequential quadratic programming (SQP) algorithm, firstly assesses the compatibility of different generation schemes upon the level of power loss reduction and DG cost. The solutions obtained are finally validated with the constraints of maximum number and size of DG, as well as voltage violation and DG penetration. The proposed method is tested on IEEE 33 bus system, proving that the technique is effective and applicable.