Optimal Distributed Generation Planning Using PSO Algorithm for Economic Benefits of DG Owners and Distribution Companies

Abstract

This paper proposes a method to solve the optimal placement problem of DGs in distribution networks by using PSO algorithm. The formulation of bi-objective problem has been done for getting maximum benefit for DGs and distribution systems. The objective function takes into account DG owners' revenues from selling electricity and renewable energy incentives. On the other hand, distribution companies experience decreased power losses, better voltage profile, higher reliability, and environmental emissions reduction. In the evaluation of the proposed approach, simulation tests were performed in MATLAB on the IEEE 34-bus system to find the best placement and sizing of DGs. Simulation results indicate remarkable reductions in power losses, improved voltage stability, and huge economic benefits for both parties within operational limits. Thus, it was found out that the proposed PSO algorithm can be used as an efficient way of DG planning.