Optimal sizing and siting of distributed generation

Increased numbers of distributed generation (DG) have become connected to the distribution network as a result of the network deregulation and increased customer demands. They represent and alternative option to postpone the transmission and distribution expansion required to satisfy the forcasted peak loads. This paper proposes an optimization model aims to determine optimal DG sizes and sites that minimize the new DG capital cost, DG operating costs, losses compensation costs, and cost of the purchased power by the distribution network. This optimization is performed subject to several technical constraints related to both network and DG operation; it is also performed on hourly bases for different DG types and for different scenarios. The investment required to upgrade the network without DG is compared with DC investments to justify their economical impact.