Optimization of Generation and Distribution Expansion in Microgrid Architectures

Abstract: With increasing penetration of distributed energy resources (DER), the nature of distribution systems worldwide will evolve. It is expected that such evolution will result in the formation of ‘microgrids, ’ i.e., dis-tribution networks that are connected in a grid-like fashion. This paper anticipates this, and proposes a rational approach to the architecture of such microgrids. The proposed approach consists of planning for the load growth in a given distribution system, and systematically developing it into an optimal microgrid, where a predeter-mined amount of DER is deployed in the system and appropriate network additions are made to meet reliability guarantees in the presence of component unavailabilities. The paper presents a formulation of the optimization problem, its implementation using a method based on particle swarm optimization, and its demonstration on a small distribution system. Key-Words: microgrid, reliability, optimal distribution planning, distributed energy resources, particle swarm optimization.