Optimal DG Allocation for Maximizing Operational Benefits in Unbundled Electric Distribution System

This paper proposes a simple and effective model for optimally placing the distributed generations (DGs) in an unbundled paradigm of an electric distribution system. The proposed framework aims to maximize the operational benefits of both the distribution company (DistCo) and distributed generation owners (DGOs). The formulated mixed-integer nonlinear programming problem is subject to equality constraints given by DistFlow equations for power balance and inequality constraints in the form of upper and lower limits on decision variables. This optimization process deliberates the hourly variation of load demand and electricity price to approximate the daily operations. The proposed model is tested on a well-known radial distribution network (i.e., 33-bus), illustrating different case studies and verifying the efficacy. The numerical results show improvement in the distribution network's physical condition after placing the DGs optimally.