Placement of DG in Distribution System for Loss

Reduction
Yogesh P. Patel, PG Student

Ashvin G. Patel, Assistant Professor

Department of Electrical Engineering, SPCE

Visnagar, Gujarat, India
patelyogesh7772@gmail.com

Department of Electrical Engineering, SPCE

Visnagar, Gujarat, India
ashnim764@yahoo.co.in

Abstract - The development of Distribution Generation (DG)

will bring new changes to traditional power systems.
Appropriate size and location of Distributed Generation play a
significant role in minimizing power losses in Distribution
Systems. This paper presents an algorithm to obtain the
optimum size and optimum location of the DG's at any bus in
the distribution network, including power cost and the
available rating of DG's if the DG's exist in a competitive
market. An algorithm is applied to 30 bus radial system using
single as well as multi placement of DG's in distribution system
and its result indicate that, if the DG's are located at their
optimal locations and have optimal sizes, the total losses will be
reduced in the distribution network. The results can be used as
a look-up table, which can help design engineers when
inserting DG's into the distribution networks.
Keywords - Distributed generation, Optimal location, Optimal
size, Loss minimization

I.

INTRODUCTION

Utilities are continuously planning the expansion of

their electrical networks in order to face the load growth and
to properly supply their consumers. The traditional solution
is the construction of new substations or the expansion of
those already exists. However, these companies began to
evaluate new manners of expanding their capacities when
government started to simulate the addition of new power
sources to the system. From that moment, Distributed
Generation (DG) started to retake its importance.
Distributed Generation can be defined as an
electrical power source connected directly to the distribution
network or on the consumer side of the meter. It may be
understood in simple term as small-scale electricity market.
The International Energy Agency (IEA) defines distributed
generation as a generating plant, serving a customer on-site
or providing support to a distribution network connected to
the grid at distribution-level voltages [1]. CIGRE defines
DG as the generation that has the following characteristics
[2]: It is not centrally planned; it is not centrally dispatched
at present; it is usually connected to the distribution
network; it is smaller than 50-100 MW. Other organizations
like the Electric Power Research Institute (EPRI) define a
distributed generation as the generation from a few kilowatts

978-1-4673-0934-9/12/$31.00 2012 IEEE

up to 50 MW [3]. In general, DG means small scale

generation.
There are a number of DG technologies available
in the market today and a few are still at the research and
development stage. Some currently available technologies
are: reciprocating engines, micro turbines, combustion gas
turbines, fuel cells, photovoltaic systems and wind turbines.
Each of these technologies has its own benefits and
characteristics. Among all DGs, diesel or gas reciprocating
engines and gas turbines make up most of the capacity
installed so far. Simultaneously, new DG technology, like
micro turbines, is being introduced and older technology,
like reciprocating engines, is being improved [1]. Fuel cells
are the technology of the future; however, there are some
prototype demonstration projects. The cost of photovoltaic
systems is expected to fall continuously over the next
decade. These statements obviously indicate that the future
of power generation is DG.
DG could be considered as one of the most viable
options to ease some of the problems (e.g. high loss, low
reliability, poor power quality and congestion in
transmission systems) faced by power systems, apart from
meeting the energy demand of ever growing loads. In
addition, the modular and small size of the DG will facilitate
the planner to install it in a shorter time frame compared to
the conventional solution. It would be more beneficial to
install in a more decentralized environment where there is a
larger uncertainty in demand and supply. However, given
the choices, they need to be placed in appropriate locations
with suitable sizes. Therefore, analysis tools are needed to
be developed to examine locations and the sizing of such
DG installations.
This paper modified the economic dispatch method
to determine the optimum size and location of DG in the
distribution network. The power cost and rating limits of
DG can be taken into consideration. The proposed algorithm
is suitable for the allocation of single or multiple DGs in a
given distribution network.
The remainder of this paper is organized as follow:
Section II is a brief review of the previous research on
determining DG's optimum size and location is presented.
Sections III explain the complete mathematical description
and steps of the proposed algorithm. Section IV portrays test

distribution systems with their results and discussions.

Finally, conclusions are summarized in section V.
II.

REVIEW OF VARIOUS METHODS

DG allocation studies are relatively new, unlike

capacitor allocation. In [4]-[5], a power flow algorithm is
presented to find the optimum DG size at each load bus,
assuming every load bus can have a DG source. The Genetic
Algorithm (GA) based method to determine size and
location is used in [6]-[8]. GA's are suitable for multiobjective problems like DG allocation, and can give near
optimal results, but they are computationally demanding and
slow in convergence. Griffin [9] uses a loss sensitivity factor
method and Naresh [10] proposes an analytical method to
determine the optimal size and location of DG in
distribution networks.
III.

In this algorithm, we consider the problem in

general and determine the optimal size and location of the
DG, taking power losses and cost into consideration in
addition to the available power rating limits of DG.
A. Mathematical Analysis:-

ci = i + i Pi + i Pi

(1)

If the power system contains N generators, the total

cost is given by the following equation:

i =1

ct = Ci = ( i + i Pi + i Pi 2 )

Also, satisfying the inequality constraints of generators, the

power limit is expressed as follows:

Pi (min) Pi Pi (max) ,

PL = PB
i ij Pj

(3)

A more general formula, containing a linear and a constant

term, and referred to as Kron's formula is [11]:
N

PL = PB
i ij Pj + B0i Pi + B00
i =1 j =1

(6)

i =1

i =1

L = Ct + ( PD + PL Pi ) + i ( max ) ( Pi Pi ( max ) ) 

+ i ( min ) ( Pi Pi ( min ) ) (7)
i =1

Where:

= incremental power cost,

i (min) = factor which takes the minimum

i (max) = factor which takes the maximum

generation power limits of generator i,
The minimum of this unconstrained function is
found at the point where the partials of the function to its
variable are zero:

(2)

i =1 j =1

i=1, 2,N

Using the Lagrange multiplier and adding

additional terms to include the inequality constraints, then
obtain

L
=0
Pi

(8)

L
=0

(9)

L
= Pi Pi (max) = 0
i (max)

(10)

The total system loss as a quadratic function of the generator

power outputs is:
N

(5)

+ PL

generation power limits of generator i,

Where i , i and i are the cost coefficient of generator

i ( in $/h, in $/MWh, in $/MWh2).

i =1

i =1

The fuel cost of the generator at bus i can be

represented as a quadratic function of real power generation
(Pi) [11]:

P = P

Where Pi(min) and Pi(max) are the minimum and maximum

generating limits, respectively for generator i.

PROPOSED ALGORITHM

The coefficients are called loss coefficient or Bcoefficients.

The generations are restricted to lie within given
minimum and maximum limits. The optimization process
aims to minimize the overall generating cost, Ct , given by
Equation (2), subject to the constraint that generation should
be equal to total demands (PD) plus losses (PL):

i =1

(4)

L
i (min)

= Pi Pi (min) = 0

(11)

From Equations (10) and (11) implies that Pi should not be

allowed to go beyond its limits, and when Pi is within its

limits, then i (min) = i (max) = 0.

1
+ B11

B
21

BN 1

Therefore the first condition given by Equation (8) results

in:

Ct
P
+ (0 + L 1) = 0
Pi
Pi

(12)

Since:

Then,
(13)

And therefore the condition the optimum for optimum

dispatch is:

BN 2

P1

B2 N P2 



P
N
N
+ B NN


B1 N

B1

B2
(19)

BN

In short form,

EP = D

dCi
P
+ L =,
dPi
Pi

i=1, 2,.,N

(14)

The second condition given by Equation (9) results in

Equation (15):
N

P = P
i

+ PL

(15)

( k ) (1 B0i ) i 2 ( k ) Bij Pj( k )

j =1
j i

Pi ( k ) =

Equation (14) can be rearranged as:

dC
i =,
dPi

i=1, 2,.,N

(16)

(17)

( k ) (1 B0i ) i 2 ( k ) Bij Pj( k )

i =1

2( i + ( k ) Bii )

(18)

= PD + PL( k )

(22)

or
(23)

Expanding the left-hand side of Equation (23) in the Taylor

series about an operating point, (k),and neglecting the
higher-order terms results in Equation (24):

df ( )
f ( ) ( k ) +

j i

Extending Equation (18) to all generators results in the

following linear equations in matrix form:

(21)

j i

f ( ) ( k ) = PD + PL( k )

Substituting Equation (17) in Equation (14) results in

Equation (18):
N
Bi
1
i

+ Bii Pi + Bij Pi = 1 B0i

2

j =1

2( i + ( k ) Bii )

Substituting for Pi from Equation (21) in Equation (5)

results in Equation (22):

The incremental power losses are obtained from

the loss formula given by Equation (4) and results in
Equation (17):
N
PL
= 2 Bij Pj + B0i
Pi
j =1

(20)

To find the optimal for an estimated value of (1)

(Initial value of the incremental power cost), the
simultaneous linear equation given by Equation (19) is
solved. Then, the iterative process is continued using the
gradient method [11]. To do this, from Equation (18), Pi at
the kth iteration is expressed as:

i =1

1 PL

Pi

2
+ B22 

1 B01

1 1 B 02
=
2


1 B 0 N

Ct = C1 + C2 + .. + C N

Ct dCi
=
Pi
dPi

B12

or

(k )

( k ) = PD + PL( K )

(24)

 ( k ) =

P ( k )
df ( )

(k )

P ( k )
dPi

(k )

(25)

Where,

Pi

i =1

(k )

i (1 B0i ) + Bii i 2 i Bij Pj( k )

i =1

2( i + Bii )

(k )

j i
2

(26)

and therefore,

( k +1) = ( k ) + ( k )

(27)

where,
N

P ( k ) = PD + PL( k ) Pi ( k )
i =1

Step 4: dpslack
dpslack is the difference (absolute value) between
the scheduled slack generation determined from the
coordination equation, and the slack generation obtained
from the power flow solution.
Step 5: dpslack >
A power flow solution obtained with the new
scheduling of generation results in new loss coefficients,
which can be used to solve the coordination equation again.
This process can be continued until dpslack is within a
specified tolerance (). If the value of dpslack is greater than
a specified tolerance () than it give the value of dispatched
power of generator and it goes for another iteration in the
loop and if the dpslack is less than a specified tolerance ()
than it give the final value of total system loss and optimal
dispatch of generator.
Step 6: Calculate losses and optimal generation
At the end of the program it calculates and gives
the final value of total system losses and the optimal
dispatch of the generator and DG
IV.

The process is continued until P(K) which is known as

dpslack, having value less than a specified accuracy.
B. Algorithm Steps:Step 1: Load flow solution
In this load flow solution is done with the NewtonRaphson method, it is useful to determine the steady-state
operation of an electric power system.
Through the load flow studies we can obtain the
voltage magnitudes and angles at each bus in the steady
state. This is rather important as the magnitudes of the bus
voltages are required to be held within a specified limit.
Once the bus voltage magnitudes and their angles are
computed using the load flow, the real and reactive power
flow through each line can be computed.

TEST SYSTEM AND RESULTS

The proposed algorithm is tested on 30 bus radial

distribution system as shown in Figure 1. This system has a
total load of 14.20 MW and 5 MVAr. The parameters of this
system are given in [12]. A computer program has been
written in MATLAB 7.2 to calculate the optimum sizes of
the DG at various buses and power losses, with the DG at
different locations to identify the best location using single
as well as multi-placement of DG.

Step 2: Bloss Program

In Bloss program, a value of B, B0, B00 are obtained
for finding the total system loss using Krons formula:
N

PL = PB
i ij Pj + B0i Pi + B00
i =1 j =1

i =1

Step 3: Dispatch Program

In this program, optimal dispatch of generator and
DG is been found using the formula:
N

( k ) (1 B0i ) i 2 ( k ) Bij Pj( k )

Pi ( k ) =

j =1
j i

2( i + ( k ) Bii )


Figure 1. 30-Bus radial distribution system

A. Single DG Placement Results

Fig. 2 shows the result, in which DG at bus no. 11 having

value 0.2876 MW which is minimal total system loss than
other bus, therefore it can be consider as an optimum (best)
location. The second optimum location is at bus no. 12
having total system loss 0.3178 MW. The third optimum
location is at bus no. 10 having total system loss 0.3356
MW.
Fig. 3 shows the corresponding optimal size of DG at
various nodes.

A single DG is placed at different buses of the

system known as Single DG placement which is used for
obtaining the optimal location and size of DG in the system.
Total system losses at all buses for optimum size of DG

8
7

B. Multi DG Placement Results

T o ta l sy ste m lo sse s ( M W )

A first three optimal location at bus no. 11, 12 and

10 obtained from single placement of DG is taken as a
location for multi placement of DG in the system.

5
4

TABLE I.

Least losses corresponding

to optimal location

3
2
1

Case I
Case
II

Case
III

10

15

20

25

30

Bus no.

Figure 2. Result of Total power losses for DG at various buses

Optimum size of DG at all buses of 30 bus system

18

O p tim u m siz e o f d istr ib u te d g e n e r a to r ( M W )

16

Optimum size
corresponding
to minimum losses

10

No. of
DG

Bus No.

11
11
12
11
12
10

2
3

Total
system loss
(MW)
0.2876
0.2801
0.2529

Opt. DG
Size
(MW)
4.5116
2.2980
2.2061
1.7216
1.2856
1.4696

Table I shows the result of multi placement of DG,

in which for Case I taking one DG which have the optimal
location at bus no. 11 and having total system loss 0.2876
MW, now in Case II taking two DGs at bus no. 11 and 12
and having total system loss 0.2801 MW and their
corresponding DG size, and at last in Case III taking three
DGs at bus no. 11, 12 and 10 and having total system loss
0.2529 MW and their corresponding DG size.
In all this cases, one can found that by increasing
the number of DG in the distribution system, a total system
loss can be reduced from 0.2876 MW to 0.2529 MW. The
result of proposed method proved that the optimal size and
location of a DG can save a huge amount of power.

14
12

MULTI DG PLACEMENT RESULTS

IV.

CONCLUSIONS

8
6
4
2
0

10

15

20

25

Bus no.
Figure 3. Result of Optimal size of DG at various buses

30

This paper presents an algorithm and develops two

programs to calculate the optimum size of DG for
minimizing power losses in the distribution network. The
benefit of the proposed algorithm for size calculation is that
a lookup table can be created and used to restrict the size of
the DG at the distribution system. The proposed method can
be used to determine the optimum size and location of DG,
taking into consideration the power cost and available power
rating of DGs. In real system, the choice of the best site may
not be always possible due to many constraints, however,
 the analysis here showed that the losses arising from
different placement varies greatly and hence this factor must

be taken into consideration when determining an appropriate

location.

ACKNOWLEDGEMENT
We are thankful to Department of Electrical
Engineering, SPCE, Visnagar for their kind academic
support.

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