A novel optimal distribution system planning framework implementing distributed generation in a deregulated electricity market

This paper introduces a new framework included mathematical model and a new software package interfacing two powerful softwares (MATLAB and GAMS) for obtaining the optimal distributed generation (DG) capacity sizing and sitting investments with capability to simulate large distribution system planning. The proposed optimization model allows minimizing total system planning costs for DG investment, DG operation and maintenance, purchase of power by the distribution companies (DISCOs) from transmission companies (TRANSCOs) and system power losses. The proposed model provides not only the DG size and site but also the new market price as well. Three different cases depending on system conditions and three different scenarios depending on different planning alternatives and electrical market structures, have been considered. They have allowed validating the economical and electrical benefits of introducing DG by solving the distribution system planning problem and by improving power quality of distribution system. DG installation increases the feeders' lifetime by reducing their loading and adds the benefit of using the existing distribution system for further load growth without the need for feeders upgrading. More, by investing in DG, the DISCO can minimize its total planning cost and reduce its customers' bills. (C) 2009 Elsevier B.V. All rights reserved.