Co-Optimization Generation and Distribution Planning in Microgrids

Abstract: This paper proposes a co-optimization generation and distribution planning model in microgrids in which simultaneous investment in generation, i.e., distributed generation (DG) and distributed energy storage (DES), and distribution, i.e., upgrading the existing distribution network, is considered. The objective of the proposed model is to minimize the microgrid total planning cost which comprises the investment cost of installed generation assets and lines, the microgrid operation cost, and the cost of unserved energy. The microgrid planning solution determines the optimal generation size, location, and mix, as well as required network upgrade. To consider line flow and voltage limits, a linearized power flow model is proposed and used, allowing further application of mixed integer linear programming (MILP) in problem modeling. The proposed model is applied to the IEEE 33-bus standard test system to demonstrate the acceptable performance and the effectiveness of the proposed model.