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Optimal Distributed Generation Placement in Power Distribution Networks: Models, Methods, and Future Research
Pavlos S. Georgilakis, Senior Member, IEEE, and Nikos D. Hatziargyriou, Fellow, IEEE
AbstractThe integration of distributed generation (DG) units in power distribution networks has become increasingly important in recent years. The aim of the optimal DG placement (ODGP) is to provide the best locations and sizes of DGs to optimize electrical distribution network operation and planning taking into account DG capacity constraints. Several models and methods have been suggested for the solution of the ODGP problem. This paper presents an overview of the state of the art models and methods applied to the ODGP problem, analyzing and classifying current and future research trends in this eld. Index TermsDecentralized generation, dispersed generation, distributed energy resources, distributed generation (DG), distribution systems optimization, embedded generation, optimal distributed generation placement (ODGP), planning.

I. INTRODUCTION ISTRIBUTED generation units (also called decentralized generation, dispersed generation, and embedded generation) are small generating plants connected directly to the distribution network or on the customer site of the meter. In the last decade, the penetration of renewable and nonrenewable distributed generation (DG) resources is increasing worldwide encouraged by national and international policies aiming to increase the share of renewable energy sources and highly efcient micro-combined heat and power units in order to reduce greenhouse gas emissions and alleviate global warming. Next to environmental advantages, DGs contribute in the application of competitive energy policies, diversication of energy resources, reduction of on-peak operating cost, deferral of network upgrades, lower losses and lower transmission and distribution costs, and potential increase of service quality to the end-customer. Moreover, DGs are available in modular units, characterized by ease of nding sites for smaller generators, shorter construction times, and lower capital costs. Decision about DG placement is taken by their owners and investors, depending on site and primary fuel availability or climatic conditions. Although the installation and exploitation of
Manuscript received September 17, 2012; revised December 03, 2012; accepted December 24, 2012. Date of publication January 23, 2013; date of current version July 18, 2013. This work was supported in part by the European Commission under Contract FP7-ENERGY-2007-2-TREN-218903 (IRENE-40 Project). Paper no. TPWRS-01051-2012. The authors are with the School of Electrical and Computer Engineering, National Technical University of Athens (NTUA), Athens 15780, Greece (e-mail: pgeorg@power.ece.ntua.gr; nh@power.ece.ntua.gr). Digital Object Identier 10.1109/TPWRS.2012.2237043

DGs to solve network problems has been debated in distribution networks, the fact is that, in most cases, the distribution system operator (DSO) has no control or inuence about DG location and size below a certain limit. However, DG placement impacts critically the operation of the distribution network. Inappropriate DG placement may increase system losses and network capital and operating costs. On the contrary, optimal DG placement (ODGP) can improve network performance in terms of voltage prole, reduce ows and system losses, and improve power quality and reliability of supply. The DG placement problem has therefore attracted the interest of many research efforts in the last fteen years [1][83], since it can provide DSOs, regulators, and policy makers useful input for the derivation of incentives and regulatory measures. This paper proposes a taxonomy of ODGP models and methods, offering a unifying description of a relatively large number of works devoted to the subject. This review serves as a guide to aid researchers and power system engineers on the available DG placement models and methodologies. In comparison to [84] and [85], this paper introduces a systematic qualitative assessment of ODGP models and methods, providing the contribution of all of the reviewed ODGP works. This paper is organized as follows. Sections II and III outline and classify the published models and methods, respectively. Section IV discusses the contribution of the reviewed works. Section V suggests future work ideas, and Section VI concludes. II. MATHEMATICAL FORMULATIONS A. General Problem Statement The typical ODGP problem deals with the determination of the optimum locations and sizes of DG units to be installed into existing distribution networks, subject to electrical network operating constraints, DG operation constraints, and investment constraints. The ODGP is a complex mixed integer nonlinear optimization problem. B. Objective The objective function of the ODGP can be single or multiobjective. The main single-objective functions are: 1) minimization of the total power loss of the system; 2) minimization of energy losses; 3) minimization of system average interruption duration index (SAIDI); 4) minimization of cost; 5) minimization of voltage deviations; 6) maximization of DG capacity; 7) maximization of prot; 8) maximization of a benet/cost ratio; and 9) maximization of voltage limit loadability (i.e., the maximum

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loading that can be supplied by the power distribution system while the voltages at all nodes are kept within the limits). ODGP multiobjective formulations can be classied as: 1) multiobjective function with weights, where the multiobjective formulation is transformed into a single objective function using the weighted sum of individual objectives; 2) goal multiobjective index, where the multiobjective formulation is transformed into a single objective function using the goal programming method; 3) multiobjective formulation considering more than one often contrasting objectives and selecting the best compromise solution in a set of feasible solutions. C. Number of DGs Depending on the number of DGs to be installed, the ODGP problem is classied as: 1) single DG or 2) multiple DGs installation.

G. Constraints The most common constraints in the ODGP formulation are: 1) power ow equality constraints; 2) bus voltage or voltage drop limits; and 3) line or transformer overloading or capacity limitsmoreover, the following constraints have been considered in some ODGP models: 4) total harmonic voltage distortion limit; 5) short-circuit level limit; 6) reliability constraints, e.g., max SAIDI; 7) power generation limits, 8) budget limit, 9) DG with constant power factor; 10) DG penetration limit; 11) maximum number of DGs; 12) limited buses for DG installation; and 13) discrete size of DG units. H. Taxonomy Table I presents a taxonomy of the reviewed ODGP models. III. METHODS A. Analytical Methods

D. DG Variables The following design variables (unknowns) are alternatively computed for each DG: 1) location; 2) size; 3) location and size; 4) type, location and size; 5) number, location and size; and 6) number, type, location, and size. DG type refers to DG technology, e.g., wind, solar, biomass, fuel cell, and diesel. As an example, let us consider the above-mentioned second case where the design variable is only the DG size. This particular class of ODGP problem is very interesting in the smart grid system, where the usage of renewable energy is expected to increase. However, placement of these renewable DGs is greatly inuenced by the natural environment. Therefore, it is very important to determine the size of renewable energy when the placement is xed [76], [81]. E. Load Variables The load prole is modelled in ODGP as: 1) one-load level; 2) multi-load level; 3) time-varying; 4) probabilistic; and 5) fuzzy. The load can be either distributed along the lines, or concentrated on the network buses. In case of concentrated load, the following modelling alternatives exist: 1) constant power; 2) variable power that depends on the magnitude of bus voltage; 3) probabilistic; and 4) fuzzy. F. DG Technology DG can be rotating devices (synchronous or asynchronous machines) directly coupled to the network, or they can be rotating or static devices interfaced via electronic converters. When connected to the power system, these DG technologies have different impacts on power system operation, control, and stability [86], [87]. For example, inverter-based DG units have voltage control capability. Moreover, they impact system harmonic levels more than synchronous-based DG. On the other hand, directly coupled rotating DG units have a much more profound effect on protection coordination than converter-interfaced DG units. Thus, these power system impacts of DG technology affect the size and optimal placement of DG [82], [83].

On a radial feeder with uniformly distributed load, the analytical method known as the 2/3 rule suggests to install a DG of 2/3 capacity of the incoming generation at 2/3 of the length of the line [3]; however, this technique may not be effective for nonuniformly distributed loads. Two analytical methods for optimal location of a single DG with xed size are introduced in [8]: the rst method is applicable to radial and the second one to meshed power systems. An analytical method, based on the exact loss formula, is proposed to optimally site and size a single DG [20]. An analytical method using a loss sensitivity factor that is based on the equivalent current injection is developed in [38] to nd the optimum size and location of a single DG. An analytical method is proposed in [39] for nding the optimal locations of multiple DGs in combination with the Kalman lter algorithm for determining their optimal size. Analytical expressions for the optimal location and size of one and two DGs are proposed in [37]. Analytical expressions for nding optimal size and power factor of different types of DGs are suggested in [49]. An analytical method described in [79] computes the optimal location and size of multiple DGs, considering also different types of DGs. B. Numerical Methods 1) Gradient Search: Gradient search for the optimal sizing of DGs in meshed networks, ignoring and considering fault level constraints, is proposed in [1] and [17], respectively. 2) Linear Programming (LP): LP is used to solve ODGP models in [15] and [21], achieving maximum DG penetration and maximum DG energy harvesting, respectively. 3) Sequential Quadratic Programming (SQP): SQP is applied to solve ODGP without and with fault level constraints, in [53] and [10], respectively. 4) Nonlinear Programming (NLP): A discrete probabilistic generation-load model with all possible operating conditions is reduced into a deterministic model that is solved using a mixed integer nonlinear programming (MINLP) technique for optimally allocating either only wind DG units [54], or different types of DG units [44]. The ODGP is formulated as a multi-period ac optimal power ow (OPF)

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TABLE I TAXONOMY OF THE REVIEWED OPTIMAL DG PLACEMENT MODELS

that is solved using NLP [42], [43], [57]. The distribution network capacity for the connection of DG is computed by an OPF formulation that is solved by an interior point method [9]. MINLP is employed for optimal allocation of different types of DG units considering electricity market price uctuation [56]. An ODGP model in hybrid electricity market is evaluated using MINLP [45]. An integrated distribution network planning model, implementing ODGP as an alternative option, is solved by MINLP [12]. Electronically interfaced DG units, with an objective of improving the voltage stability margin, are optimally placed and sized using MINLP [82]. 5) Dynamic Programming (DP): DP is applied to solve an ODGP model that maximizes the prot of the distribution network operator (DNO) and considers light, medium, and peak load conditions [58]. 6) Ordinal Optimization (OO): An OO method is developed in [40] for specifying the locations and sizes of multiple DGs such that a tradeoff between loss minimization and DG capacity maximization is achieved.

7) Exhaustive Search: The ODGP is solved by an exhaustive search that seeks the DG location that optimizes the objective function (maximization of reliability or minimization of system power loss) for a given DG size [18]. An exhaustive search is proposed for solving the ODGP in distribution networks with variable power load in [26], [33], [51]. A multiobjective performance index, taking into account the time-varying behaviour of both demand and generation, when optimized by an exhaustive search, is suggested in [29]. C. Heuristic Methods 1) Genetic Algorithm (GA): GA and an improved Hereford ranch algorithm (variant of GA) are proposed in [2] for DGs optimal sizing. GA is applied to solve an ODGP problem with reliability constraints in [19]. GA is used to solve an ODGP that considers variable power concentrated load models [36], distributed loads [35], and constant power concentrated loads [35], [41]. A GA is employed to solve ODGP that maximizes the prot of

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TABLE I (Continued.) TAXONOMY OF THE REVIEWED OPTIMAL DG PLACEMENT MODELS

the DNO by the optimal placement of DGs [47]. A GA methodology is implemented to optimally allocate renewable DG units in distribution network to maximize the worth of the connection to the local distribution company as well as the customers connected to the system [81]. A value-based approach, taking into account the benets and costs of DGs, is developed and solved by a GA that computes the optimal number, type, location, and size of DGs [22]. A GA-based method allocates simultaneously DGs and remote controllable switches in distribution networks [68]. The Chu-Beasley GA solves a nonlinear bi-level ODGP programming problem that maximizes the prots to the DG owner, subject to the minimization of payments procured by the DNO [74]. Goal programming transforms a multiobjective ODGP into a single objective ODGP, which is solved by a GA method [73]. GA and decision theory are applied to solve an ODGP problem under uncertainty including power quality issues [6]. GA and OPF are combined to solve the ODGP [27]. A fuzzy GA is used in an ODGP model that minimizes power loss cost [5]. A fuzzy GA is employed to solve a weighted multiobjective ODGP model [60], [61]. A hybrid GA and fuzzy goal programming is proposed for ODGP [30]. A combined GA and tabu search is suggested in [16]. A hybrid GA and immune algorithm solves an ODGP that maximizes the prot of the DNO [62]. GA solves a weighted multiobjective ODGP model in [48]. Multiobjective ODGP formulations are solved using a GA and an -constrained method in

2)

3)

4) 5)

[11], [14], [64]. A nondominated sorting GA (NSGA) is used to maximize the distributed wind power integration [32]. NSGA-II (a variant of NSGA) in combination with a max-min approach solves a multiobjective ODGP [28]. ODGP models with uncertainties are solved by Monte Carlo simulation in conjunction with GA in [23], [67]. Tabu Search (TS): The ODGP problem is solved by the TS method for the case of uniformly distributed loads [4]. TS simultaneously solves ODGP and optimal placement of reactive power sources [24]. A continuous stochastic ODGP model is solved by a GA as well as by a combined TS and scatter search [65]. Particle Swarm Optimization (PSO): PSO is applied to solve an ODGP model in distribution system with nonunity power factor considering variable power load models [63]. An improved PSO is proposed for optimal placement of various DG types that inject real power and inject or absorb reactive power [55]. A hybrid GA and PSO is suggested in [71]. Discrete PSO computes the optimal DG location and OPF calculates the optimal DG size [75]. PSO is used for optimal selection of types, locations and sizes of both inverter-based and synchronous-based DG units to achieve maximum DG penetration considering standard harmonic limits and protection coordination constraints [83]. Ant Colony Optimization: An ant colony system (ACS) algorithm is proposed to solve the ODGP [34]. Articial Bee Colony (ABC): An ABC method, with only two control parameters to be tuned, is proposed in [66].

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TABLE II CONTRIBUTION OF THE REVIEWED OPTIMAL DG PLACEMENT WORKS

6) Differential Evolution (DE): The optimal DG locations are computed based on incremental bus voltage sensitivities and the optimal DG sizes are calculated by DE [78]. 7) Harmony Search (HS): The optimal DG location is based on loss sensitivity factors and the optimal DG size is obtained by HS algorithm [80]. 8) Practical Heuristic Algorithms: A heuristic approach places a single DG based on the ranking of the energy not supplied index or the ranking of the power losses in the network lines [72]. A heuristic cost-benet approach for ODGP to serve peak demands optimally in a competitive electricity market is introduced in [7]. A heuristic value-based approach determines the optimum location of a single DG by minimizing the system reliability cost [69]. The DG placement in wholesale electricity market is solved by two heuristic methods that are based on a locational marginal price ranking and a consumer payment ranking [25]. A heuristic iterative search technique is developed that optimizes the weighting factor of the objective function and maximizes the potential benet thanks to the optimal DG placement [50]. Heuristic ODGP methods based on continuation power ow are proposed in [31], [70]. The ODGP is solved by voltage

sensitivity analysis and loss sensitivity analysis of power ow equations in combination with a security constrained optimization method [13]. A heuristic method calculates the regions of higher probability for location of DG plants [46]. The ODGP for small distribution networks is solved by a heuristic method in [52]. The ODGP is solved by a heuristic iterative method in two stages, in which clustering techniques and exhaustive search are exploited [77]. A sensitivity test computes the optimal location and a heuristic curve-tted technique provides the optimal size of DG [59]. Heuristic methods for sizing wind farms based on modes of voltage instability are developed in [76]. D. Evaluation Analytical methods are easy to implement and fast to execute. However, their results are only indicative, since they make simplied assumptions including the consideration of only one power system loading snapshot. Among the available numerical methods for ODGP, the most efcient are the nonlinear programming, the sequential quadratic programming and the ordinal optimization methods. The main advantage of the exhaustive search method is that it guarantees the nding of the global optimum; however, it is not

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TABLE II (Continued.) CONTRIBUTION OF THE REVIEWED OPTIMAL DG PLACEMENT WORKS

suitable for large-scale systems, which is also a disadvantage for dynamic programming method. Heuristic methods are usually robust and provide near-optimal solutions for large, complex ODGP problems. Generally, they require high computational effort. However, this limitation is not necessarily critical in DG placement applications. IV. CONTRIBUTION OF THE REVIEWED WORKS Table II describes the main contribution of the published ODGP works reviewed in this paper in a chronological order. V. FUTURE RESEARCH 1) Coordinated planning. Reconguration, capacitors placement, and DG placement are three major methods for loss reduction in distribution networks. It is interesting to investigate network reconguration with simultaneous placement of DGs, capacitors, and protection devices, which are dependent on each other. Moreover, traditional planning options, i.e., the addition or expansion of substations and lines should be also simultaneously considered. Such a coordinated planning can provide maximum benets for the network owner and/or the network users; moreover, it can

evaluate the feasibility of DG investment versus other traditional planning options, assuming that investment in DG is allowed by local regulation. 2) Dynamic ODGP. Static ODGP nds the optimal locations and sizes of DGs to be installed into an existing distribution network. A dynamic ODGP is needed, if multiple years are considered and optimal DG placement along the entire planning horizon is searched. 3) Uncertainties and stochastic optimization. Several parameters of ODGP are uncertain, e.g., wind power generation, solar power generation, fuel price, future load growth, market prices, future capital costs, future availability of fuel supply system, and power of plug-in electric vehicles. Consequently, stochastic optimization, or robust programming techniques can be applied to tackle with these uncertainties. 4) Active network management (ANM). The introduction of DG in the distribution system enables active operation of the distribution system, which certainly involves communication and control. DG can be used, for example, not only to control the voltage, but also to prevent overloads. Using real-time information about the operation of the network and the nature of connected DG resources, protective relay

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settings can be dynamically changed. Moreover, deployment of ANM could reduce the total costs of integrating high penetrations of DGs. ODGP models with embedded ANM schemes can help ensure adequate power quality with high penetrations of DG. 5) Islanded operation. Intentional islanding of distribution networks in the form of microgrids increases the economic competitiveness of DG and improves the reliability of these networks. It is important to identify future storage systems that will integrate with DG in islanding operation and system optimization functions (demand control) to increase the economic competitiveness of DG. Moreover, ANM with overall distribution system controls will allow controlled islanding. New ODGP models are needed to evaluate advanced methods for intentional islanding. 6) Ancillary services. DG can provide ancillary services, including those necessary to maintain a sustained and stable grid operation, e.g., provision of active power on demand of the grid. The ability of DG to provide ancillary services has to be taken into account within the ODGP model. 7) Further improvements in methods. The optimal settings of the parameters of the heuristic optimization algorithms, e.g., PSO, GA, and ACS, are computed by trial and error. These parameters can be adaptively and automatically tuned in order to improve the efciency of the heuristic ODGP algorithms. VI. CONCLUSION This paper presents a thorough description of the state-ofthe-art models and optimization methods applied to the ODGP problem, analyzing and classifying current and future research trends in this eld. The most common ODGP model has the following characteristics: 1) installation of multiple DGs; 2) the design variables are the location and size; and 3) the objective is the minimization of the total power loss of the system. The solution methodologies for the ODGP problem are classied into three major categories: analytical, numerical and heuristic methods. The most frequently used techniques for the solution of the ODGP problem are the genetic algorithm and various practical heuristic algorithms. Future research areas include coordinated planning, dynamic ODGP, uncertainties and stochastic optimization, active network management, and islanded operation. REFERENCES
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Pavlos S. Georgilakis (M01SM11) received the Diploma and Ph.D. degrees in electrical and computer engineering from the National Technical University of Athens, Athens, Greece, in 1990 and 2000, respectively. He is currently a Lecturer at the School of Electrical and Computer Engineering, National Technical University of Athens, Athens, Greece. From 2004 to 2009, he was an Assistant Professor with the Production Engineering and Management Department, Technical University of Crete, Chania, Greece. His current research interests include power systems optimization, renewable energy sources and distributed generation.

Nikos D. Hatziargyriou (SM90F09) received the Diploma degree in electrical and mechanical engineering from the National Technical University of Athens, Athens, Greece, in 1976, and the M.Sc. and Ph.D. degrees from the University of Manchester Institute of Science and Technology, Manchester, U.K., in 1979 and 1982, respectively. He is currently Professor with the School of Electrical and Computer Engineering, National Technical University of Athens, Athens, Greece. From February 2007 to September 2012, he was Deputy CEO of the Public Power Corporation, the Electricity Utility of Greece, responsible for transmission and distribution networks. His research interests include dispersed and renewable generation, dynamic security assessment, and application of articial intelligence techniques to power systems. Prof. Hatziargyriou is a convener of CIGRE Study Committee C6 Dispersed Generation and member of the Technical Chamber of Greece.