Abstract:
This paper presents new analytical expressions to efficiently capture the optimal power factor of each
Distributed Generation (DG) unit for reducing energy losses and enhancing voltage stability over a given
planning horizon. These expressions are based on the derivation of a multi-objective index (IMO), which
is formulated as a combination of active and reactive power loss indices. The decision for the optimal
location, size and number of DG units is then obtained through a benefit–cost analysis. Here, the total
benefit includes energy sales and additional benefits, namely energy loss reduction, network upgrade
deferral and emission reduction. The total cost is a sum of capital, operation and maintenance costs.
The methodology was applied to a 69-bus industrial distribution system. The results showed that the
additional benefits are imperative. Inclusion of these in the analysis would yield faster DG investment
recovery.
