Value-based distributed generator placements for service quality improvements

Distributed generator (DG) resources are small, self-contained electric generating plants that can provide power to homes, businesses or industrial facilities in distribution feeders. They can be used to reduce power loss and improve service reliability. However, the values of DGs are largely dependent on their types, sizes and locations as they were installed in distribution feeders. A value-based method is proposed in this paper to enhance the reliability and obtain the benefits for DG placement. The benefits of DG placement described in this paper include power cost saving, power loss reduction, and reliability enhancement. The costs of DG placement include the investment, maintenance and operating costs. The proposed value-based method tries to find the best tradeoff between the costs and benefits of DG placement and then find the optimal types of DG and their corresponding locations and sizes in distribution feeders. The derived formulations are solved by a genetic algorithm based method. Test results show that with proper types, sizes and installation site selection, DG placement can be used to improve system reliability, reduce customer interruption costs and save power cost; as well as enabling electric utilities to obtain the maximal economical benefits.