Investment Optimization to Improve Power Distribution System Reliability Metrics

Utilizing historical utility outage data, an approach is presented to optimize investments which maximize reliability, i.e., minimize System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index (SAIFI) metrics. This method is designed for distribution system operators (DSOs) to improve reliability through small investments. This approach is not appropriate for large system planning and investments (e.g. new transmission lines or generation) since further economic and stability concerns are required for this type of analysis. The first step in the reliability investment optimization is to create synthetic outage data sets for a future year based on probability density functions of historical utility outage data. Once several (likely hundreds of) future year outage scenarios are created, an optimization model is used to minimize the synthetic outage SAIDI and SAIFI norm (other metrics could also be used). The results from this method can be used for reliability system planning purposes and can inform DSOs which investments to pursue to improve their reliability metrics.