Optimal location and size of DG for enhancing loading margin and reducing system loss

This paper proposes a methodology for optimal placement of DG (dispatchable and non-dispatchable) in a grid to enhance the loading margin and reduce system losses. Since weather conditions have an impact on the loading margin and system loss, the optimal location for non-dispatchable sources, such as wind, or PV, can be placed at the closest dominant bus. The modal participation factor analysis in a reduced Jacobian matrix form is proposed to identify the dominant bus. The sensitivity analysis of non-dispatchable DG, such as a direct drive PMSG based wind turbine at the dominant buses with respect to wind speed is performed to identify the most suitable location. The proposed methodology has been tested in the IEEE 14 bus test system.