A Review on Optimal Sizing and Siting of

Distributed Generation System

Integrating distributed generation into the grid

Peeyoosh Gupta1, Manjaree Pandit2, D.P. Kothari3

1
Indian Railways Centre for Advanced Maintenance Technology, Gwalior, India, [email protected]
2
Department of Electrical Engineering, MITS, Gwalior, India, [email protected]
3
Director-Research, WCEM, Wardha Road, Nagpur, India, [email protected]

Abstract—The non-conventional resources like sun and wind of DG these advantages are higher compared to the former
are never-ending, reliable and pollution less sources of power. [6,7]
When such limited size renewable sources situated close to load
centers are used for generating power, they are termed as The DG can either be used as base load power source or to
distributed energy resources (DER) or Distributed Generation provide electric energy during peak load. The DG systems can
(DG). After the Kyoto protocol on climate change there is thrust be stand- alone [8] but normally the system is connected to
to preserve depleting reserves of conventional fuels i.e. coal and grid. Fig 1 illustrates the schematic diagram of DG system
petroleum. One of the ways to achieve the same is through integration with grid. There are reliability issues when DGs are
integrating these DER into the present electric supply system. integrated with the Grid. Therefore though the DER are
The DER can be used in isolation or in integration with the normally planned to be kept near load centre but determination
existing system. Integration of DER with the grid supply helps to of the exact access location (Point of Common Coupling
provide continuous supply of electricity with overall (PCC)) to the grid is very important consideration for the
improvement in the system performance. The capacity sizing and planners. Non judicious selection of location of DG and its size
siting ( also called location allocation) of the DG is an important may result into increase in losses, reduction in the reliability
consideration for economic operation with lowest investment. It level, reducing voltage profile below the allowable limit [9-14]
is a large scale non linear multi-objective constrained and change in short circuit level of the system, which affects
optimization problem with high dimension and practical
the associated protection system and power flow. To avoid
constraints. A review on optimal sizing and siting of DG system
such technical issues after introduction of DG, optimum
has been attempted in this paper. The various solution techniques
and objective functions along with various constraints applicable
placement of the same is needed.
for the solution of optimal sizing and siting problem of DG are This paper discusses some specific aspects concerning the
discussed and compared in this paper. optimization of the size and location of the DG. The aim of the
study is to critically evaluate the various available techniques.
Keywords—Optimization, DG, size, site, location Other operational issues like impact of DG on distribution
system, control and protection strategies etc. are not addressed
I. INTRODUCTION here.
The distributed generation (DG) is defined [1] as the small
scale production of electric power within distribution networks PCC G
or on the customer side of the network. DG is placed in the r
system close to the user of electric energy. The DER such as DG Inverter i
Solar, Wind, the hybrid systems of solar-wind are now being Brea d
used increasingly because of their obvious environmental ker
advantages. Presently, the most popular use of these resources
is for lighting purposes particularly to the areas where grid Load
supply is either not available or erratic. When the distributed
generation is used in addition to the grid supply it reduces
electric energy units drawn by utility from the grid and thereby Fig. 1. Schematic diagram of DG integration with existing grid supply
reduces emission of many harmful gases such as CO, NOx,
SOx, Particulate Matter (PM), Unburned Hydrocarbons (UHC) II. CAPACITY SIZING AND SITING OF THE DG SYSTEM
are also reduced. Apart from the environmental benefits the
DG has got many technical benefits [2,3] such as reduction in The penetration of the DER is growing day by day in the
line losses, improved system performance, increase in the distribution system. The aim of the distribution company
efficiency, and improved profile of voltage and grid (DISCOM) is to supply electric power with reliability, safety
reinforcement. DG is economically beneficial [4,5] in terms of and security duly maintaining desired power quality indicators.
less maintenance, reduction in the investment cost to upgrade At the same time the operational constraints viz. voltage,
the system in case of increase of load and many intangible current and reactive power etc. should also be met with
benefits due to improved environment. The advantages of loss minimum loss. If due care is not taken then introduction of
minimization and the better voltage profile can also be DER may adversely affect the aims enumerated above. The
introduced by using shunt capacitor but with the introduction major challenges are: i) Inaccurate voltage setting can result

978-1-4799-6042-2/14/$31.00 ©2014 IEEE

into the circulating currents if many small local DGs are being suitable for complex system and might give erroneous results
used ii) Large DG may change direction of power flow in the for real life system [18,46,50]. This method is applied to only
distribution system thus changing the voltage profile iii) The single DG unit [51-53] and hence many other advantages of
integration of DG changes the system state from passive to DG is not considered. The method is not robust [46].
active and affects the reliability iv) It changes the fault current
during unusual operation of the grid affecting protective B. Classical optimization:
system. v) Islanding situation may deteriorate the reliability The classical methods of optimization are useful in finding
and system parameters like voltage and frequency. vi) The the optimum solution for both type of objectives functions i.e.
maximum size of the DG is dependent on the interconnection single and multiple objective functions. It can handle equality
location and the operational pf. vii) There is a variation of the and inequality constraints as well. This method fails in
voltage profile with the change of location of the DG applications whose objective functions are not continuous
In response to the challenges and to optimize the benefits of and/or differentiable.
DG number of research papers on sizing and siting of the This approach includes optimal power flow (OPF) solutions
distributed resources are available in literature. The research which can optimize many variable but it falls weak when the
can be grouped [15] in seven categories: i) The maximum dimension of the power system is high [54]. The problem with
capacity of the DG which can be added to the distribution equality constraint is solved by Lagrange multiplier (LM)
system [16]. ii) Finding the optimum sizing of the DG [17-22]. method [55]. The linear programming [56] (LP) demands
iii) Determining the optimum site of the DG unit. iv) Deciding linear objective functions however it is easy to realize with
the optimal size and site of the DG [23-35]. v) Determining (d) high computational efficiency.
in a varying load condition [36]. vi) Optimal planning of
multiple DG sources [28,29,37-39]. vii) Optimal planning of
multiple DG sources with non unity power factor [40] C. Artificial intelligence methods
The AI is a soft computing technique for optimization
When the DG is introduced with optimized planning as which mimic some of the processes of natural evolution. GAs
discussed above in the existing distribution system it leads to perform directed random searches through a given set of
[17] improvement of voltage profile, reduction in total losses, alternatives with the aim of finding the best alternative with
improvement of reliability and power quality [41-43] respect to the given objective function.
Haesen et al. [57] used a GA technique based on the
III. SOLUTION TECHNIQUES FOR OPTIMAL SIZING AND
hypothesis of natural selection with an objective to minimize
SITING OF DG UNITS
the power loss. Combination of GA techniques was used by
The DG units if placed without proper calculation results Borges et al. [58] and minimization of the network loss and
into deterioration of system performance. To reap the benefits maximization of benefit/cost relation was objective function.
of the DER the system planner has to optimize the size and site The size and site was optimized by Carpenelli et al. [59] by
of the distributed generation before integrating to the using a three step procedure based on GA and decision theory.
distribution system. The various solution techniques proposed
[44,45] to arrive at a optimal size and site of DG can be The Artificial Intelligence method is accurate [59] robust
grouped into following six categories. i) Analytical methods ii) [60] and immune to local minima [61]. The method has high
Classical optimization iii) Artificial intelligence methods iv) potential for global search and works with continuous/discrete
Meta-heuristics methods v) Hybrid methods vi) Other methods. [2] type of parameter and employ transition probabilistic rules
[62]. The method brings all possible solution sets but however
sometimes the method gets premature convergence [63], less
A. The Analytical Method
accurate with large system [2] and complex algorithm [57]
In this method the model is developed for the identified
problem in the form of algebraic equation. The same is D. Metaheuristic methods
analyzed for the optimization. The model could be the outcome
of the simulation or the experiments. For accuracy method A meta-heuristic is a master process that guides and
demands very precise models. modifies the operations of subordinate heuristics to produce
high quality solutions efficiently [64]. Meta- heuristic method
Using analytical method [18] could optimize only the requires determining the optimal controlling parameter whereas
location of the DG whereas [46] have optimized the size and in Teaching-Learning based optimization [TLBO] the same is
site of DG based on an approximate loss formula. Hamedi H. et not required.
al. [47] have shown analytically that the optimum DG siting
improves the system reliability and loss. The method proposed Algorithm like Tabu search (TS) [65], Genetic algorithm
for radial system by Gozel T. et al. [48] is accurate and faster (GA) [62], Particle swarm optimization (PSO) [66], Ant colony
since it did not use any admittance, impedance or Jacobian optimization (ACO) [30] are few natured inspired technique
matrices. which have been proposed to solve this complex problem.

The analytical method is simple, fast and accurate [48-51] The Meta-heuristic method is an iterative [67], simple [68],
and since it is non iterative therefore convergence problem [18, robust [65] method and brings near-optimal solutions [69].
46] is eliminated. It can also be used to prove that there is an This method has been used for both the optimal size and site
improvement in voltage regulation [52]. However it is not be
[70] of DG units. The major drawback of the method is that General form of multiple objective problem can be
reliability is not considered during modeling [30]. expressed as below:

E. Hybrid methods
Min G(x) = min([G1(x), G2(x),…..G N(x)T] (1)
In this method the optimization task is divided into two
complementary parts. The GA performs the coarse global Subject to the constraints
optimization and local refinement is done by the conventional
method. Thus the auxiliary information such as derivatives or
other specific knowledge about the special structure of the Η(x) = [Η1(x), Η2(x) …..Ηκ(x)]= 0
objective function is utilized.
The need of hybrid approaches i.e. combination of GA and
other method of the optimization was felt because of need for Ι(x) =[Ι1(x), Ι2 (x)...ΙJ(x)] ” 0
the fast convergence [71,72] with less number of iteration
[20,73]. This method produces more accurate results with Where G1(x)….GN(x) are N number of different objectives
multi-objective functions [74] and works as a better decision to be simultaneously optimized and x is decision vector. H(x)
making tools[75]. Hybrid approach can better take care for the is vector of equality constraints and I(x) is vector of inequality
real world constraints[76]. Wide range of solutions [75] is constraints.
available in this method.
TABLE I. OBJECTIVE FUNCTION FOR OPTIMIZATION OF SIZE AND SITE
OF DG
F. Other methods
Category Type Optimization Goal
Approaches other than the discussed above are also
available in the literature and grouped as the other method. Min.losses /feeder loss [37,78,79,52,58,52,48,36,57]
[51,2][21]
The solution technique voltage stability constrained optimal SO
Min total cost [9,6,51,53,27]
power flow (OPF)[77] can handle complex and large network DG capacity/ output [56,54,7,19]
and requires short time however it cannot take care the problem Savings in investments [4] [80]
Voltage profile reliability losses [62]
with discontinuities. The continuous power flow (CPF) based
Cost of parameters like System upgrading, power
iterative algorithm was used in [39] to find the most voltage losses, energy not supplied and the energy required
sensitive bus in the distribution system which could result in by the customer served [29]
CO
voltage instability. It is an effective and robust method but not Power quality indicators like voltage quality &
suitable for complex system. Aman MM et al. [27] optimized harmonic distortion & minimizing the network costs
DG site and size by using novel Power Stability Index (PSI) for energy losses. [76]
Weighted sum of investment, operation and
and proposed algorithm consuming 50-60% less computational reliability costs [41]
time as compared to Golden Section Search (GSS). Voltage & loss reduction [81,82]
Cost of DG & power losses [25,59]
IV. OBJECTIVE FUNCTIONS FOR OPTIMAL SIZING AND Losses, voltage profile & voltage stability [83]
Power losses, voltage profile, most capacity & short
SITING OF DG UNITS Static circuit level [70]
Number of objective functions have been used by the Reduction in Loss and sensitivity factor of active
MO
power [84]
researchers for optimization of the sizing and siting of the DG. Minimization of power and feeder loss [50]
The optimization functions can be divided into two broad Maximize profitability and minimize power losses
categories. i) Single objective function ii) Multiple objective [53]
functions. Minimizing investment and operation costs, power
loss and the customers energy demand loss [9]
The Single Objective (SO) function of power loss Optimizing line loading, losses and reactive power
[67,72,74] is used very commonly to solve the problem of the capacity [69]
size/site of DER however it is not the economical solution Optimizing cost of network upgrading, power losses
since the operational cost also affects the economy of the cost, the cost of energy not supplied and customer
energy purchased cost [29]
operation. The total cost, minimization of real power loss and Function of line loading and reactive power losses,
optimization of DG capacity are few single objective function. MO minimizing the total power loss [66]
Optimization of the network losses and benefit/cost
The Multi Objective (MO) programming [29] considers the relation [62]
real world constraints and therefore the model is more realistic Minimization of system losses, network disruption
and the planner is having liberty to have Contradicting cost and maximizing DG rating [85]
Objectives (CO) while arriving at an optimal solution. The Saving in electricity bills [38]
main factors in the MO problem are active and reactive power The difference between benefits & costs [87]
Dynamic SO Energy losses [54, 86]
loss minimization, improvement in reliability, voltage profile, Loss adjustment factor & individual generation load
investment and operation cost, profit maximization and power factor [86]
quality etc. Various objective functions for optimization of the
optimal placing and capacities of DG have been summarized in
tableI.
 Category Type Optimization Goal and/or traditional methods are increasingly being employed to
Weighted sum of indices referring to power losses, get a more efficient and reliable optimal solution. During
voltage variations reserve capacity of conductors & optimal sizing/siting of DG, usually multiple conflicting
MO fault currents [80] objectives are to be satisfied. Therefore the optimum solutions
Total power losses, Optimizing the DG investment are based on the trade-off between the different objectives .
and total operation cost. [30]
The review will help the Grid Regulators and investing
While considering the optimum size and location of companies to choose from the options available for
the DER it is essential that the stability of the system is not optimization of location and capacity of the DG resources for
compromised and introduction of DER does not result into integration into grid. The research has shown the overall
deterioration of the electrical performance in terms of improvement in the reliability, efficiency and reduction in
reliability and security. Limitation imposed by the thermal losses by proper size/site of DER which results into substantial
capacity of the transformer and line for the transfer of the growth in the utilization of DER. With the help of large
power should also be taken into account. Thus the system has number of references given in this paper planners may very
to operate under certain constraints and for a real system the well select the most suitable technique based on their
constraints are of both types i.e. equality and inequality requirement. The large number of papers also indicates that the
constraints. Gomez M et al. [88] have used many inequality DG is an interesting line of research because of its innumerous
constraints viz. system voltage should remain close to nominal, advantages to the society. Optimal use of the DG would result
the generator parameters like power- real and reactive both into considerable national savings and power to the remote
and voltage must be within their prescribed lower and upper places in a nation like India.
limits. Apart from this the equality constraint considered by the
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