Optimal Location of Distributed Energy Resources Considering Investment Costs, Use of Resources and Network Constraints

The consideration of distributed energy resources as non-wires alternatives for the elimination of overloads and voltage problems poses new challenges for their location and management. Traditional location methodologies approach the problem from the distribution system operator perspective, who tries to correct overload and voltage outside margins while minimizing other possible negative impacts in the network. The approach presented in this paper also considers the investor’s point of view, seeking the most appropriate technology alternative, the maximum use of the available resource, and the minimum investment. Those aspects are explicitly taken into account in the formulation of the model, which takes the form of a mixed-integer nonlinear optimization problem. The proposed methodology is tested in two different scenarios using the medium-voltage distribution system benchmark of CIGRE. The results show that the interests of the distribution system operator and the investors can be jointly satisfied, achieving an effective, safe and realistic integration of new distributed resources.