Abstract
Distributed generations (DGs) have persuaded researchers for more than ten years that they are the most cost-effective and environmentally friendly alternative that can be combined with centralized generations. The right location and size are necessary for distributed generation planning to achieve the best possible technical, economic, commercial, and regulatory outcomes. Most of these goals are incompatible, hence multi-objective solutions are needed. Only a few articles have examined this issue from the standpoint of the DG owners among the several studies that have been suggested to address the DG placement problem, and none of them have taken into account the crucial role that the gearbox expenses allotted to DGs play. As a result, the multi-objective optimization voltage stability problem in a deregulated environment is solved in this work. By placing and sizing the distributed generation (DG) units in the radial distributed system (RDS) optimally, the problem’s main goal is to increase the profit of distribution companies (DISCOs). To get the best results, a straightforward and parameter light moth-flame optimization (MFO) approach is obtainable. Additionally, improvements to voltage stability and a decrease in reactive and actual power loss ensure been made. The cost of operating and maintaining a single DG unit, as well as the best location for installation, are calculated. The IEEE 33-bus test system now uses the recommended method. Simulation is used to evaluate how well the strategy performs, and the results are contrasted with those of alternative approaches already in use. The comparison shows that the suggested strategy boosts DISCO’s revenue in a radial distribution system.
Access provided by Autonomous University of Puebla. Download conference paper PDF
Similar content being viewed by others
Keywords
- Distribution company
- Radial distributed system
- Distributed generation
- Moth–flame optimization
- Differential evolution
- Deregulated power system
1 Introduction
Distributed generation (DG) has been more popular in recent years for usage in power grids. There are a number of ways in which DG units may affect system operating conditions, including the voltage profile, voltage stability, dependability, and the safety of the power market [1, 2]. Electricity is always a need, and distribution companies (DISCOs) work tirelessly to meet the needs of its consumers while keeping costs low. The design, operation, and maintenance of the DISCOs are based on the principle of maximizing return on investment at the lowest possible cost. Improving the voltage profile and minimizing power loss are crucial responsibilities for DISCOs to achieve maximum profit [3, 4]. To enhance the functioning of the system, the DISCOs are developing a great number of inventive technological concepts and programmes [5].
To maximize the DG owner’s return while minimizing the distribution company’s expenditure, this framework analyses and places DG’s units in the best possible location of the RDS [6, 7]. To maximize the best placement and appropriate value of DG units, a new parameter-free MFO approach is suggested [8,9,10,11]. The two searching operators of MFO, such as moths and flames, have the greatest capacity to find the ideal global solution with the least amount of computing time. Consequently, it effectively optimizes the size and ideal position of DG with conventional operational restrictions in order to boost the voltage profile and decrease DISCO network loss [12,13,14,15]. This paper considers the unpredictability of load demand, power production, electricity pricing, and dependability. The improved performance of the MFO algorithm is shown by testing the method on standard IEEE 33 node test system. The simulation result of voltage profile, power loss, DG location and size, and the cost–benefit analysis of DISCOs and DG owners are presented cutting-edge this research both numerically and graphically. Research based on comparisons was also carried out to prove the method’s efficacy.
2 Problem Formulation
2.1 Objective Functions of DISCOs
This study’s primary purpose is to maximize the return of DG owners and decrease the costs of DISCOs. The profit of DG owners is expressed numerically as,
Anywhere F remains the system’s impartial purpose and MPF remains the maximum profit of DG owners.
2.1.1 Maximum Profit Function
The ten-year change amid the benefits understood then the costs expended aimed at DG deployment is used to compute the maximum savings cost (Eq. 2).
2.1.2 Net Present Value
Equation (3) demonstrates how to calculate the remaining contemporary worth issue (γ) using a 9% rise amount and a 12.5% attention amount to assess the worth of current costs over a planning period (N). The current cost value is calculated by multiplying this factor by each expense heading.
NPV stands for remaining contemporary worth, IF for inflation, and IR for interest rate when t = 1, 2, 3,…, N.
2.1.3 Benefit Evaluation
The expected price of DG-generated power is US$ 300 per kWh, and the estimated cost of reducing energy loss is US$ 0.05 per kWh, for a total cost of US$ 300 per kWh.
2.1.4 Cost of Energy Loss Reduction
To simulate actual power losses, the load movement explanation for the test system is carried out deprived of DG, and then the procedure is repeated. The discrepancy in losses, which is indicated in Eq. (4), demonstrates a reduced net loss.
where NLR = net loss reduction, Ploss = system power loss without DG, and Ploss, DG = system power loss with DG. The DG loss reduction is transformed to a cost value using Eq. (5).
CNLR’s net present cost value is derived using Eq. (6).
wherever t = 1, 2,3,…,N; CNLR = cost of net loss reduction.
2.1.5 Cost of DG Power Generation
This inquiry has examined a PV system. The cost information aimed at this PV system is retrieved after [6] and computed using Eq. (7).
The present-day charge worth of CDG, Gen is computed by Eq. (8).
wherever t = 1, 2,3,…,N; CDG, Gen = cost of DG power generation.
2.1.6 Expenses Cost
Amount comprises initial DG asset plus increasing O&M expenses throughout the forecasted time frame.
2.1.7 Operation and Maintenance Cost
This price takes into consideration the O&M expenses of grid-connected DG and is calculated as follows in Eq. (9). O&M data for DG implementation was gathered from
The present-day cost value of CDG, O&M is calculated using Eq. (10)
wherever t = 1, 2,3,…,N; CDG, O&M = Cost of DG maintenance and operation.
2.1.8 Investment Cost
Investment cost of a solar PV-type DG is calculated at the best location using Eq. (11).
The economic justification of the aforementioned goal function is contingent upon the proper placement and rating of DG.
2.2 Limitations and Restrictions of DISCOs
The following restrictions apply to this optimization problem.
Bus voltages and branch currents limits during the planning process, locations and dimensions of DGs should be chosen so that branch currents and bus voltages remain within predetermined ranges. These restrictions are outlined below:
where the minimum and maximum voltage levels for each bus are and indicate the maximum allowable current in a given line due to thermal constraints.
2.2.1 DG Capacity Limit
Assume the following period defines the limits on the active and reactive capacity of each DG.
In these inequalities, \(P_{DG,i}^{\min }\), \(P_{DG,i}^{\max }\), \(Q_{DG,i}^{\min }\), \(Q_{DG,i}^{\max }\) are the lowest and highest amounts of active and reactive power that the DG unit is capable of producing, respectively.
2.2.2 Contract Price Limit
Constraints imposed by the electricity market on the contract price between the DG owner and the DISCO may be represented as follows:
where \(CP_{DG}^{\min }\) and \(CP_{DG}^{\max }\) are the minimum and maximum contract price amounts that may be decided based on the market price of energy and other economic factors.
2.2.3 Power-Flow Constraints
Active and reactive power both need to be introduced into the system in order to satisfy the power-flow equations.
where \(C_{{{\text{investment}}}}^{\max }\) reflects the maximum amount of funding the DG owner can afford Fig. 1.
3 Result and Discussion
In order to determine the location of the DG, its size, and conduct economic analysis in a competitive open market environment, this section shows how to apply the MFO algorithm to the DG planning problem. IEEE 33 node test system [16] is used with the MFO algorithm to examine performance. The test case takes into account the DG system that is based on solar PV [17]. The investment cost and operation and maintenance costs for DGs in the 100–1000 kW range are US$ 2493/kW and US$ 19/kW, respectively while they are US$ 2025/kW and US$ 16/kW for the 1000–2000 kW range. Table 1 lists the market price and duration details for DISCOs. Additionally, it is anticipated that the contract price will range between $35 and $50 per MWh. As far as actual power goes, DG has a value between 0.2 and 1 MW. The technical and financial details of the DGs are displayed in Table 2. Table 3 displays the variables that were used in this study. An Intel Core i3 computer running at 2.10 GHz and equipped with 4 GB of RAM was used to carry out the optimization method. MATLAB version R2014a was used. Table 1 documents and summarizes the test case’s findings for the IEEE 33 node RDS.
3.1 33 Node Test System
Table 4 and Fig. 2 may be found in the supplementary materials [18, 19], and they provide line data, bus data, and a single-line schematic of the 33-bus test system, respectively. It has a reactive and real load of 3755 kW and 2330 kVAR, correspondingly, then operates at a radial voltage of 1266 kV with 33 buses and 32 branches.
By applying the MFO algorithm to the recommended RDS, the voltage contour and voltage stability directory are enhanced. The best sitting and sizing of DG is 29 as shown in Fig. 2 and 1.335924 MW each, respectively. The status of voltage profile and VSI for base case analysis with DG location is numerically reported in Tables 4 and 5. It is also graphically displayed in Figs. 3 and 4, respectively.
Table 6 shows the system’s minimum VSI, actual power loss, and reactive power loss with and without DG installation. The value of the indices is nearby zero (except VSI), and it is obvious that the performance of the system is enhanced. Since the optimal result of voltage stability index is nearby one, it indicates that the system voltage stability has been improved.
The simulated costs of various DISCO outlays over the course of a single year are shown in Table 7. The whole cost of DG ownership consists of the initial investment, as well as the running and maintenance expenses. The benefit, expenses and total profit of DISCOs for 10 year of planning period are clearly reported in Table 8 [20, 21]. The benefit, expenses and total profit of DISCOs are 21.59 M $/year, 3.81 M $/year and 17.78 M $/year, respectively.
Table 7 then Table 8 compare the consequences of the proposed multi-objective MFO approach to those of the fuzzy-DE algorithm to show which is more effective. From Table 8, it is established that the MFO algorithm provides higher benefit, total profits with less computational time by proper sitting and sizing of DG in RDS. The total profits of DISCOs are increased by 13.72% when compared with fuzzy-DE algorithm. Figure 5 depicts a comparison between the benefit, expenses and total profit of DISCOs and the present system. Figure 6 shows the convergence curve for the 33-bus test system. The data shows that it can be extrapolated that just 25 to 30 iterations are required for the strategy to provide the optimal global answer.
The distribution load flow method may be used to freely calculate the base case voltage and VSI and to carry out the base case power flow. To enhance the voltage profile and increase DISCOs profits, the MFO algorithm is then utilized to find the sweet spot for the DG’s placement and size. It has more ability and well suitable for solving the problems of large system and to obtain the accurate solution by using it’s searching operators of moth and flame. The two operators are effectively tuning the optimal value of RDS for maximizing the profit of DISCOs. In this work, a single unit of DG is considered and rating of DG is 0 to 2 MW. In this algorithm, only limited number of parameters is used to obtain the solutions. The feasible control parameters obtained by the training process of MFO algorithm is as follows. Population size = 50; number of variables = 7; maximum number of iterations = 100.
4 Conclusion
The various voltage stability issues in both regulated and deregulated power systems are solved using the intelligent computational optimization algorithm moth-flame optimization (MFO) in this research work. The MFO meta-heuristic algorithm has been successfully used to increase the voltage stability of radial distribution systems, and it is regarded as one of the most promising of the meta-heuristic algorithms. Moths and flames are its two primary constituents. A solution has also been considered using both moths and flames. Through the proper placement and sizing of various capacitors, DG units, and network reconfiguration processes, the two searching operators of MFO have successfully improved the voltage profile, maximized net savings, and decreased network losses of RDS.
To enhance the advantages of DISCOs and DG owners in a deregulated environment, a devised MFO algorithm has also been used. The costs and income of the different DG owners and DISCOs are calculated here. It includes the costs of purchasing capacitors and DGs, as well as their costs of operation and maintenance. It also includes the costs of substations and customer interruptions, as well as the revenue and profits of DG owners. To demonstrate the effectiveness of the MFO, a numerical example using IEEE standard RDS test systems has been taken into consideration. The outcome demonstrates that, in comparison with other competing algorithms, the suggested algorithm offers an increase in profit with less computational time. Therefore, it can be said that the suggested MFO approach paves the best path for resolving power system optimization issues in a deregulated environment.
References
Ackermann T, Andersson G, Söder L (2001) Distributed generation: a definition. Electr Power Syst Res 57(3):195–204. https://doi.org/10.1016/s0378-7796(01)00101-8
Acharya N, Mahat P, Mithulananthan N (2006) An analytical approach for DG allocation in primary distribution network. Int J Electr Power Energy Syst 28(10):669–678. https://doi.org/10.1016/j.ijepes.2006.02.013
Wang C, Nehrir M (2004) Analytical approaches for optimal placement of distributed generation sources in power systems. IEEE Trans Power Syst 19(4):2068–2076. https://doi.org/10.1109/TPWRS.2004.836189
Abapour S, Nojavan S, Abapour M (2018) Multi-objective short-term scheduling of active distribution networks for benefit maximization of DisCos and DG owners considering demand response programs and energy storage system. J Mod Power Syst Clean Energy 6(1):95–106
Kim KH, Lee YJ, Rhee SB, Lee SK, You SK (2002) Dispersed generator placement using fuzzy-ga in distribution systems. In: 2002 IEEE power engineering society summer meeting, vol 3, pp 1148–1153. https://doi.org/10.1109/pess.2002.1043458
Singh K, Yadav VK, Padhy NP, Sharma J (2014) Congestion management considering optimal placement of distributed generator in deregulated power system networks. Electr Power Compon Syst 1(42):13–22. https://doi.org/10.1080/15325008.2013.843218
Shukla TN, Singh SP, Srinivasarao V, Naik KB (2010) Optimal sizing of distributed generation placed on radial distribution systems. Electr Power Compon Syst 38(3):260–274. https://doi.org/10.1080/15325000903273403
Kansal S, Tyagi B, Kumar V (2017) Cost benefit analysis for optimal distributed generation placement in distribution systems. Int J Ambient Energy. https://doi.org/10.1080/01430750.2015.1031407
NREL Distributed generation renewable energy estimate of costs. http:// www:nrel:gov=analysis=techlcoerecostest:html
Devi AL, Subramanyam B (2007) Optimal DG unit placement for loss reduction in radial distribution system—a case study. ARPN J Eng Appl Sci 2(6):57–61
Ghatak SR, Sannigrahi S, Acharjee P (2018) Comparative performance analysis of DG and DSTATCOM using improved PSO based on success rate for deregulated environment. IEEE Syst J 12(3):2791–2802
Ameli A, Farrokhifard M, Ahmadifar A, Haghifam MR (2015) Distributed generation planning based on the distribution company’s and the DG owner’s profit maximization. Int Trans Electr Energy Syst 25(2):216–232
Saboori H, Hemmati R (2017) Maximizing DISCO profit in active distribution networks by optimal planning of energy storage systems and distributed generators. Renew Sustain Energy Rev 71:365–372
Ameli A, Bahrami S, Khazaeli F, Haghifam MR (2014) A multiobjective particle swarm optimization for sizing and placement of DGs from DG owner’s and distribution company’s viewpoints. IEEE Trans Power Deliv 29(4):1831–1840
Ameli A, Farrokhifard M, Ahmadifar A, Haghifam M-R (2013) Distributed generation planning based on the distribution company’s and the DG owner’s profit maximization. Int Trans Electr Energy Syst
Ghaemi S, Zare K (2017) A new method of distribution marginal price calculation in distribution networks by considering the effect of distributed generations location on network loss. J Oper Autom Power Eng 5(2):171–180
Salehi J, Jannati Oskuee MR (2017) Optimal planning of distributed generation from the DisCo and the DGO viewpoints considering the uncertainties in future demand and electricity price. Int J Ambient Energy 39(8)
Kansal S, Tyagi B, Kumar V (2017) Cost–benefit analysis for optimal distributed generation placement in distribution systems. Int J Ambient Energy 38(1):45–54
Kianmehr E, Nikkhah S, Rabiee A (2019) Multi-objective stochastic model for joint optimal allocation of DG units and network reconfiguration from DG owner’s and DISCO’s perspectives. Renew Energy 132:471–485
Ouali S, Cherkaoui A (2020) Optimal allocation of combined renewable distributed generation and capacitor units for interconnection cost reduction. J Electr Comput Eng 2020:1–11
Roy K, Dixit S (2020) Optimal placement and sizing of distributed generation and capacitors: a review. Int J New Innov Eng Technol 2(4):101–106
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2024 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
About this paper
Cite this paper
Pradeep Kumar, C.S.K.B., Balamurugan, G., Butchi Raju, Y., Baburao, P. (2024). MFO Algorithm-Based Profit Maximization of Distribution Companies by Optimal Placement and Sizing of DGs Under Deregulated Environment. In: Shaw, R.N., Siano, P., Makhilef, S., Ghosh, A., Shimi, S.L. (eds) Innovations in Electrical and Electronic Engineering. ICEEE 2023. Lecture Notes in Electrical Engineering, vol 1109. Springer, Singapore. https://doi.org/10.1007/978-981-99-8289-9_9
Download citation
DOI: https://doi.org/10.1007/978-981-99-8289-9_9
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-99-8288-2
Online ISBN: 978-981-99-8289-9
eBook Packages: EnergyEnergy (R0)