DG allocation for benefit maximization in distribution networks

This paper proposes a method to evaluate the worth of installing renewable distributed generation (DG) in distribution networks. Moreover, the work optimally allocates these DG units in the distribution network to maximize the worth of the connection to the local distribution company (LDC), as well as the customers connected to the system. The proposed methodology helps the LDC to better assess the benefits of the renewable DG units´ proposed connections and to identify the optimal buses on which to connect these DG units. The benefits considered in this paper are deferral of upgrade investments, reduction of the cost of energy losses, and reliability improvement, which is represented by the interruption cost reduction. The proposed methodology takes into consideration the uncertainty and variability associated with the output power of renewable DG as well as the load variability. The planning problem of determining the optimal location and sizes of DG units is defined as multi-objective mixed integer programming.