Incentive Driven Distributed Generation Planning with Renewable Energy Resources

Abstract

Renewable DGs may not be economically viable due to the stochastic generation and huge capital investment, but are an inevitable choice for sustainable energy development and future planning. An appropriate incentive scheme for clean Distributed Generation (DG) technologies is able to address this issue in an economical manner and is considered in proposed distributed generation planning model. The proposed model minimizes the annualized cost with Emission Offset Incentive (EOI) and the penalty for Green-house Gas (GHG) emissions. A meta-heuristic approach with dynamic tuning of control parameters is adopted to improve the success and the convergence rate of optimal solutions. The algorithm provides the optimal solution in terms of type, size, and location of DG. The proposed technique is implemented on IEEE 33-bus system. Proposed model helps the Distribution Network Operators (DNOs) to decide the proper DG technology from an economic prospective for eco-friendly energy planning.

Keywords

• distributed power generation
• heuristic algorithms
• optimization
• power generation planning
• sustainable development