Normal boundary intersection and benefit-cost ratio for distributed generation planning

• Published in: European transactions on electrical power 2010-03, Vol.20 (2), p.97-113
• Main Authors: Zangeneh, A., Jadid, S., Rahimi-Kian, A.
• Format: Article
• Language: English
• Subjects: benefit-cost analysis; Boundaries; Contracts; DisCo; distributed generation; Electric power generation; Marketing; Markets; multi-objective optimization; Optimization; Pareto optimality; Pareto set; Strategy
• ISSN: 1430-144X; 1546-3109
• DOI: 10.1002/etep.291

Distributed generation (DG) and its planning are becoming more important in power systems. This paper presents a DG planning strategy based on multi‐objective optimization approaches. The main goal of this paper is to determine a Pareto set of locations and sizes of the new DG units by minimizing different cost functions considering the technical constraints, and then determining the best planning strategy. The Pareto set will help the DG planner make a better decision in choosing the best plan from the Pareto set. The best scheme is chosen by the benefit–cost ratio (BCR). The objectives of a DG planner in this paper are assumed to be the cost of investment and operation, cost of energy purchased, cost of energy losses and the cost of energy not supplied. Two market scenarios for the planner are considered: (1) electricity auctions and (2) bilateral contracts of energy. Several case studies are presented to demonstrate the applicability of the proposed method. Copyright © 2008 John Wiley & Sons, Ltd.