An optimal operating strategy of DG unit for power loss reduction in distribution systems

This paper presents a strategy for optimal operation of distributed generation (DG) unit for minimizing distribution system power losses. An analytical approach is used to determine the optimal size and power factor of DG unit when it is placed at various locations. A computational procedure is also developed to identify the best placement at which the total system loss is the lowest. The proposed approach has been tested on a 33-bus distribution system. Importance of operating DG unit at appropriate power factor (PF) for minimizing power losses is first highlighted using an exhaustive load flow solution. The developed method is then used to calculate the optimal power factor. The results demonstrate the validity of the proposed approach in terms of optimal power factor, loss reduction and computational time. It is also shown that the optimal power factor operation can minimize power losses while achieving the optimum voltage profile enhancement and maximizing DG penetration