Optimal land use and distributed generation technology selection via geographic-based multicriteria decision analysis and mixed-integer programming

In the smart grid environment, optimal placement and sizing of microgrids have attracted a great deal of attention. Here, we propose a multi-scale optimization model for determining microgrid configuration, capacity, and geographical location, and we apply it to a municipality in Southwestern Ontario. The proposed approach accounts for the net present value of the project, power balance of the grid, maximum capacity of the current substations, and the geographic availability for the installation of a microgrid. The problem is tackled in two stages. First, a geographic information system/multicriteria decision analysis (GIS/MCDA) is performed to determine the suitable locations for the installation of distributed energy resources (DERs). Then, a mixed integer optimization model is used to determine the capacities and final installation locations of the DERs based on the results obtained in the GIS/MCDA. Finally, three different scenarios are evaluated to elucidate the influence that retail price, microgrids' minimum contribution to the demand, and available land have over the final architecture, cost, and allocation of a renewable energy project.