Optimization of Embedded Generation Sizing and Siting by using a Double Trade-off Method

Distribution System Operators have the duty of managing the distribution system safely and efficiently. Distribution revenues are generally based on asset value but revenue systems based to some extent on network performance (e.g. on the level of losses or reliability) are becoming common in many countries. Thus the distribution planner has to maximise the profit of the investments for the system development and to improve the performance of the system as well. In many case the goals are conflicting and multiobjective planning criteria may be adopted to reduce network costs and investments and to maximise some specific performance (e.g. network reliability). Furthermore, with multiobjective programming the distribution planner has the possibility of choosing a trade-off solution in a set of acceptable solutions by applying criteria to minimise risks in uncertain scenarios. These features are particularly useful whether, according to the EU directive EU/2003/54, Embedded Generation (EG) and DSM are considered as possible planning alternatives to be compared with more traditional development actions in the search for the best solution to planning problems. In this context, a methodology is presented based on multiobjective programming and decision theory which helps the decision maker to find the best development plan for the system by using the EG as a development option and by explicitly managing risks and uncertainties. In particular, the proposed methodology solves the problem of maximising the network performance by optimising some power quality indicators, like voltage quality and harmonic distortion, and by minimising the network costs (e.g. energy losses or upgrade investments) with an optimised use of EG. For this reason, the problem of the optimal sizing and siting of EG has been reformulated as a constrained, multiobjective, and nondifferentiable optimisation problem. The main idea is to apply a double trade-off procedure: the first trade-off, by means of a multiobjective P-constrained technique, allows a wide family of good EG siting and sizing solutions for all the scenarios considered (e.g. associated to a different set of wind speed at all the possible locations); the second one allows isolating the most robust solutions. In this way the planner is completely free to drive the optimisation in a certain direction without loosing objectivity and generality. Simulation results obtained by using the proposed procedure on a test system demonstrate that alternatives disregarded by the decision theory application can result the most interesting ones.