Optimal deployment of distributed generation using a reliability criterion

This paper presents an optimal planning approach toward the design of cost-efficient and reliable microgrids. The proposed approach uses simulated annealing (SA) to determine the optimal size and location of a mix of distributed generation (DG) candidate technologies to achieve stipulated reliability criteria. The deployment plan consists of adding suitable quantities of DG at appropriate locations, and is optimal in that the cost of expansion is minimized. The paper develops the models and the approach, and describes a SA-based implementation. The method is demonstrated on a standard test system, and the application of the method as a planning tool is illustrated by means of two case studies: (i) optimal expansion of an existing distribution system into a microgrid, and (ii) evaluation of the impact of projected prices on the deployment strategy. Relative penetration of different DG technologies is also analyzed.