Optimal sizing and siting of distributed energy resources considering public and private incentive policies

Abstract

The present work presents the formulation and solution approach for the problem of optimal sizing and siting of distributed energy resources based on Photovoltaic, PV, technology. The considered system is an isolated grid (small island) and the parts involved are the utility and the customers. As it happens in islands, the same utility generates and delivers energy to customers, for this reason, the installation of dispersed generation units is beneficial for reducing power losses, regularizing the voltage profile, but also for increasing the profit. The problem is solved by means of the Non dominated sorting Genetic Algorithm II, NSGA-II, identifying the optimal size and location of PV systems under different incentive policies supported by both the utility and the national government. Since a multiobjective approach has been used, the sizing and siting of PV units as well as the amount of financial support from the local distributor utility allowing higher benefits both for the utility and for the customers have been determined. The application section also quantifies the external costs associated with the most interesting design solutions. © 2008 Springer-Verlag Berlin Heidelberg.