PV Penetration Optimization with WAM Smart Inverters through Reduction of Power System Distribution Losses

The continued decrease in pricing of photovoltaic (PV) systems has led to sustained growth in installations of residential and commercial arrays. Many of these residential arrays are behind the meter (BTM) and can influence the power flow, voltage levels and the characteristics of lines and buses in the distribution system. The addition of PV systems into the grid can help reduce losses for utility companies, but due to the inherent intermittent nature of PV it can also pose new challenges. These challenges are apparent when designing the voltage regulating devices and the ideal locations of the new distributed generation sources. The goal of this study is to develop an algorithm in MATLAB coupled with Electric Power Research Institute's (EPRI) simulation tool OpenDSS to determine the optimal locations in the distribution networks for the installation of residential or commercial grade PV systems to reduce power system losses while monitoring the bus voltages and system frequency to ensure stability of the system. A wide-area-monitoring (WAM) smart inverter is implemented in the algorithm to determine optimized PV locations to aid with frequency and voltage stability. The IEEE 123 bus system is used as the test distribution network for analysis, but the algorithm will not be wed to this network. Any future network implemented by users in the OpenDSS system will be able to be optimized for PV installations with the algorithm. This system will provide distribution utility companies a tool to support designing optimal locations for the PV systems in their respective networks to minimize the power system losses as well as to allow for future growth of distributed generation (DG).