Distribution system planning considering integration of distributed generation and load curtailment options in a competitive electricity market

Distribution systems management is becoming an increasingly complicated issue due to the introduction of new technologies, new energy trading strategies and new deregulated environment. In the new deregulated energy market and considering the incentives coming from the technical and economical fields, it is reasonable to consider distributed generation (DG) as a viable option to solve the lacking electric power supply problem. This paper presents a mathematical distribution system planning model considering three planning options to system expansion and to meet the load growth requirements with a reasonable price as well as the system power quality problems. DG is introduced as an attractive planning option with competition of voltage regulator devices and interruptible load. In mathematical model, the object function includes investment costs, which are evaluated as annualized total cost, plus total running cost as well as cost of curtailed loads and losses. This model identifies the optimal type, size and location of the planning options. In the studies presented in this paper also the fluctuation of load and electricity market price versus time period and the effect of DG placement on system improvement are considered. To solve the proposed mathematical planning model a new software package interfacing MATLAB and GAMS is developed. This package is enabling to solve large extent distribution system planning program visually and very fast. The proposed methodology is tested in the case of the well-known IEEE 30-bus test system.