Cost-based optimization of DG and capacitor placement in distribution networks under dynamic load conditions

One of the most effective methods to improve the efficiency of distribution systems is by minimizing active energy losses through the optimal placement of distributed generation units and capacitor banks. A critical challenge in reducing energy losses is the dynamic nature of load power, which fluctuates over time during system operation. These variations in load create additional complexity, particularly when optimizing the placement of both generation units and capacitive banks in specific locations within the distribution network. To simplify the process, some approaches neglect the load fluctuations in their calculations, despite the fact that these variations can significantly impact energy loss and influence the ideal locations for both generation units and capacitive resources. Unlike approaches that ignore load variability to reduce computational complexity, this study explores the effects of time-varying consumption patterns on the simultaneous placement of distributed generation (DG) units and reactive power resources. A mixed-integer convex formulation is developed and solved using the CPLEX solver within the AMPL environment to simultaneously allocate DG units and capacitive banks while minimizing the total cost—including installation, operation, and energy loss costs—of active and reactive power supply. The goal is to provide insights for professionals working in distribution system optimization, highlighting the importance of considering load variability. The analysis was conducted across various distribution networks, and the findings are presented in this paper.