Optimal investment of distributed generation in restructured power system

The main impacts of DG is to enhance system reliability as it can restore power to the separated part of distribution system in case of a contingency occurs and reduce the overall system operating cost. If the DG operating cost is less than the utility power cost at each hour, DG could be employ to reduce the overall system operating cost. This paper presents a method for optimal investment of distributed generation (DG) in restructured electricity market. Here, the presented method combining optimal power flow and customer interruption cost aims to meet the optimal investment for the DG. By using this method, Distribution Network Operators can find the best sites and capacities which are available to connect an optimal number of DGs among a large number of potential combinations.