Minimizing The Electrical Power Distribution Cost By Optimizing the Distributed Generation Placement

Abstract

The objective of this paper is to minimize the total cost of electrical power distribution by optimizing the sitting and sizing of distributed generation (DG) in distribution network. The total cost consists of the compensation cost for power losses on network, the cost of purchasing power from the main grid, and also the cost incurred as a penalty charge to unserved power. The sitting and sizing of DG are optimized by using particle swarm optimization (PSO). The constraints are the bus voltage, distribution network capacity, distribution substation, and operational DG. The simulations are conducted by using Matlab with the 9-bus system as the case study. It is found that the optimum solution achieved when three DGs installed at bus 3, 7 and 9 with each capacity 5 MW. DGs reduce the total cost by $38104.79/day. DG installations also reduce energy losses and improve voltage profile in each bus.