A Meter Placement Strategy for Distribution Grids Based on Cost–Benefit Analysis

Distribution system operators are progressively expanding the measurement infrastructure in their grids to enhance the real-time monitoring capabilities. Meter placement algorithms allow identifying the best type and location for new measurements, thus being a key tool in support of meter installation decisions and planning. Existing meter placement solutions aim at reducing the monitoring uncertainties below an arbitrary accuracy threshold, but typically they are not explicitly linked to some tangible benefits achievable by the grid operator via the measurement infrastructure upgrade. This article aims at filling this gap by presenting an overall meter placement strategy that takes into account how the monitoring uncertainties translate into costs for avoiding contingencies and then drives the meter placement process according to the economic benefit resulting from the reduction of those uncertainties. An exemplary implementation is presented to describe the underlying concepts and the role and functionalities of the different software components involved in the meter placement cost–benefit analysis. Simulations performed on a sample grid show the application of the proposed meter placement strategy in a realistic scenario and highlight how this may be used to determine not only type and location of the new meters but also the number of measurements that makes sense to install according to cost–benefit criteria.