Cost–benefit analysis for optimal distributed generation placement in distribution systems

This paper presents an optimisation method to determine optimal allocations of distributed generation (DGs) and capacitors based on maximisation of a profit/worth analysis approach. The optimal locations and sizes of DGs and capacitors have been determined by minimising the power distribution loss. This method considers various technical and economic factors such as line losses, sizes of DGs and capacitors at optimal locations, investment costs, operating costs and maintenance costs of DG and capacitor to achieve the objective for a predetermined number. The electricity market price of grid power has been considered to recover initial investment in a specified time period. The improvement in the voltage profile of the system has also been considered in this work. The particle swarm optimisation technique has been used to solve the optimal placement of DGs and capacitors to maximise the profit. The proposed technique is tested on 33-bus and 69-bus test systems. © 2015 Taylor & Francis.