Optimal location and capacity planning for distributed generation with independent power production and self-generation

Lesiba Mokgonyana, Jiangfeng Zhang, Hailong Li and Yihua Hu

Applied Energy, 2017, vol. 188, issue C, 140-150

Abstract: This paper proposes a planning model for power distribution companies (DISCOs) to maximize profit. The model determines optimal network location and capacity for renewable energy source, which are categorized as independent power production (IPP) and self-generation (SG). IPP refers to generators owned by third-party investors and linked to a quota obligation mechanism. SG encompasses smaller generators, supported by feed-in tariffs, that produce energy for local consumption, exporting any surplus generation to the distribution network. The obtained optimal planning model is able to evaluate network capacity to maximize profit when the DISCO is obliged to provide network access to SG and IPP. Distinct parts of the objective function, owing to the definition of SG, are revenue erosion, recovery as well as the cost of excess energy. Together with the quota mechanism for IPP, the combination of all profit components creates a connection trade-off between IPP and SG for networks with limited capacity. The effectiveness of the model is tested on 33- and 69-bus test distribution systems and compared to standard models that maximize generation capacity with predefined capacity diffusion. Simulation results demonstrate the model outperforms the standard models in satisfying the following binding constraints: minimum IPP capacity and SG net energy. It is further revealed that integrating SG and IPP with the proposed model increases profit by up to 23.7%, adding an improvement of 8% over a feasible standard model.

Keywords: Distribution company; Distributed generation; Distribution network; Profit maximization; Quota obligation (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S030626191631755X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:appene:v:188:y:2017:i:c:p:140-150

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/bibliographic
http://www.elsevier. ... 405891/bibliographic

DOI: 10.1016/j.apenergy.2016.11.125

Access Statistics for this article

Applied Energy is currently edited by J. Yan

More articles in Applied Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().