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DISTRIBUTION SYSTEM PLANNING USING DISTRIBUTED GENERATION

W. El-Khattam, Student, IEEE and M. M. A. Salama, Fellow, IEEE Department of Electrical and Computer Engineering, University of Waterloo
Abstract
Under deregulation, thousands of distribution companies have appeared in the electriciy market. These companies compete to encourage new investors, engage new customers and use new technologies such as Distributed Generation (DG). DGs are capable of providing the excessive required loadpower as well as minimizing the utilities electric costs. Therefore, DG modem technologies and benefirs entice electric utiliy distribution planners to implement DG as a new approach in Distribution System Planning (DSP). This paper introduces the concept of installing utility-owned DGs as a new approach and an altemative way for solving the traditional DSPproblem.

Keywords: Distributed generation; distribution system planning.

deregulation;

1. Introduction
Due to rapid population increase, there have been numerous increases in electric consumption growth rates and high load densities. These rates have reached a level, which results in difficulty to serve electricity at a reasonable price. Hence, the lack of electric power supply and the need for more generated and distributed power in the electric network at acceptable prices have become a tremendous problem. Besides the population increase, deregulation implementation in the electric power sector causes rapid economic variations and competition in the electricity market. Distribution utilities are trying very hard to obtain new optimal system expansion strategies to minimize retail electricity costs and maximize their profits at the same time. These strategies are constrained by system operation and performance as well as its economic limits [l]. DSP is a critical design parameter as it deals with the distribution network, which is considered the most expensive part in the utility network. Traditional distribution system expansion follows well-established strategies such as expanding existing substations, building new substations, adding new feeders and/or
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reconfiguring the existing distribution system. However, under the open electricity market, existence of Independent Power Producers (IPP) and the vast new generation technologies have dramatically changed the structure of the electric network operation. This new generation technologies affect the electric system. The most emerging new generation technologies are DG. It is used as a source of active power installed on customer meter sites in the distribution network. DG operational, economical and environmental benefits inspire utility planners to implement it as an optimistic approach for distribution system optimal expansion strategy. The goal of this new DSP model is to minimize the cost and satisfy optimal system economics, which can be achieved by efficient design and operation. This paper introduces the concept of implementing utility-owned DGs for enhancing the DSP problem solution, The effect of deregulation on the appearance of the DG has been illustrated. The benefits of DG planning, such as economical and operational, are illustrated. The obstacles facing DG planning, such as DG operating cycles, location, size and numbers, are discussed. Finally, conclusions are discussed.

2. Deregulation and Distributed Generation


2.1. Deregulation and The Lack of Electric Power Supply
Deregulation has divided the traditional vertically operated electric power system into several identities, which are separately owned and operated. At the distribution level, two identities appeared: the distribution company (DistCo) and the retail energy services company (ResCo) as shown in Figure 1. DistCos are responsible for distribution system ownership, management and delivery of power to the ResCos without selling electric power to customers. DistCos are performing distribution system planning, with the aim of reducing their losses and operating the distribution system efficiently. On the other hand, ResCos aim to sell power to the customer market and

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seek maximizing their profits [2]. The deregulation trend in electric power sectors aims at: Reducing electricity cost especially for retail prices and its price fluctuations. Providing the excess required customers demand. Improving the power quality of the power delivered to customers and supplying the best customer service possible. Under deregulation, customers can choose any electric power provider to supply their demands, irrespective of their distances from load centres to reduce their bills. However, there are a lot of operational obstructions facing the provision of power [3]: The existing capacities of transmission systems. 1 Lacking traditional fuels. 1 Scarcity of lands for electric network extension. Elecmc power generation and network expansion tremendous costs. Environmental aspects. Due to the fact that the deregulation trend has changed elecbic power generation worldwide and still cannot solve the electricity problem alone, the development of new generation technologies can change the ways of producing power. As a result of these changes customers can generate their own power on-site, as well as electric utilities by using DG.

3. Traditional Planning Verses Novel DG


Planning Approach
Many industrial countries have restrictions on expanding their traditional centralized power stations and transmission and distribution (T&D) grid expansion to provide the required power to customers. This expansion requires a significant amnunt of time and money to increase the grid capacity. Therefore, these restrictions oppose providing the future electric load growth at reasonable prices and time. Traditionally.,all distribution planning strategies were concerned with expanding some candidate substations, by adding new transformers, or building new substations and adding new feeders in the distribution network. These expansions are not always applicable nowadays in many situations due to lack of electric utilities territories and government regulations. In general, like traditional DSP, the goal of DG planning is to calculate the cost of keeping the requirements for power delivery equipments under the system capacity limits [l] and providing the required power demand efficiently. However, unlike traditional DSP, DG planning seeks to minimize the planning costs by creating new DSP models. These models aim to satisfy operational and economical requirements by using DG as a candidate alternative for DSP and avoiding or at least reducing: building new substations, adding new feeders or even expanding existing substations.

4. Distributed Generation Planning


To get familiar with the DG planning concept, the following aspects must he clear.

4.1. Planning Benefits of DG


P

Fig. 1. Deregulated electric power system.

2.2. Distributed Generation


DG is not a new concept but it is a new approach that changes the distribution network from a passive network to an active one. DG can be defined as a small scale-generating unit located close to the load being served. A wide variety of DG technologies and types exists: renewable energy sources such as wind turbines (WT) and photovoltaic (PV), micro-turbines (MT), fuel cells (FC) and storage energy devices such as batteries. DG can he implemented and operated by electric utilities andor customers, which change the elecmc power infrastructure industly [3].

DGs planning benefits encourage its use as an altemative approach for DSP. DG planning benefits can be classified into three categories: DG Location, Economical and Operational benefits as follows:
4.1.1. DG Location Benefits
1

According to the traditional DSP, the best locations for building new substations are the loads centre. These locations are not usually available due to geographical constraints or scarcity of land availability. However, DGs small physical size helps in solving the land availability problem and can be placed in the centre of loads. DG location is not restricted by the governments choice for potential location as in the case of selecting new substation locations.

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4.1.2. DG Economical Benefits

Installing DGs at the load centers will prevent the need for: a) Adding new expensive long feeders, which are considered to be the most expensive part in the DSP model, to distribute power among customer loads as in the case of substations. b) New transmission lines extension to energize new substations. c) Searching for potential utility territories required for building new substations or expanding existing ones. DG is capable of providing some or all of the required power without the need for increasing the existing traditional generation capacity or T&D system expansion. DGs can defer andlor reduce network upgrading. DGs improve the system performance such as [4]: I ) Enhancing the system voltage profile, which minimizes the number of required voltage regulators, capacitors and their ratings and maintenance costs. 2) Reducing the feeders power losses, which minimize the losses costs. DGs can be used to avoid installing expressway feeder to deliver power to certain load centers. DG reduces overloading of the existing electric equipment, which minimizes their maintenance costs and increases their lifetimes. From the point of view of investment, DG is considered to he a Short Term Investment approach for the DSP problem due to several reasons such as: a) DG capital cost is not large due to its moderate electric size and modular behavior as it can be installed incrementally; unlike installing new substations and feeders, which require large capital cost to activate the new expanded distribution system. b) DG returns its revenue and benefits in a short time period. c) Traditional centralized power plants such as fossil-fueled (which take up to ten years to be installed) and nuclear power plants (which take more years to be installed, tested and energized). However, DG can be installed very quickly (varying between a day and couple of months depending on its technology and size) and become active in the distribution network. Hence, the expansion planning horizon year can be reduced to get accurate load growth forecasting match with reality. Implementing DG for DSP minimizes the investment risk due to their modular characteristics, which reduce the capital cost and installation time.

4.1.3. DG Operational Benefits DGs supply safe, clean, no or low emission, reliable, low price, reduced losses and more efficient electricity than the traditional centralized power generation electricity. 1 DGs directly inject power to certain required loads, which help in reducing feeders loading unbalance. 1 The DGs controlling operation periods have a great advantage in tracking the load demand and reducing the load management process cost. DG capacity and the intertie delivering power can he controlled together to accommodate the load demand variation along the day. Introducing DG for DSP reduces the number of electric elements (substations, transformers, feeders, capacitors, regulators, protective devices and control circuits) in the distribution network. This reduction leads to minimization of the number of possibilities and randomness of faults and outages occurrences. Implementing DG for DSP alone will not require a marked capacity increase in the existing feeders, as DG injects power directly to its on-site loads [4]. DG with its modem power electronic interface can be interconnected to the grid to achieve special power quality, reliability and voltage profile requirements. DG can offer many benefits such as: I ) Simultaneous Compound Heat and Power (CHF), peak load shaving that minimizes the centralized required reserve power. 2) Emergency generation in case of electric utility failure. 3) A stable and reliable electric system. 1 Customer-owned DGs can help customers to provide part of their load demands at their peak loads while they can feed back the excess generated electric power to the grid at their light loads. Therefore, they can get some revenue back from the electric utility.

4.2. Obstacles Facing DG Planning


Implementing DG in the distribution network has many benefits, hut at the same time it faces many restrictions and limitations. Installing DG in the distribution system will increase the system planning problem complexity. DG has to be adequately sued, installed and coordinated with the existing protective devices and schemes. These limitations and problems must be solved before choosing DG as a planning option. Some of the difficulties facing DG distribution planning are:

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4.2.1. DG Operation Cycles Problem. It is considered to be one of the main problems facing the mathematical planning model design, as the time of introducing DGs in the network must be known. There are many factors affecting DG operation such as DG technologies, types, operation purpose and mainly who owns them?. DGs installed in the distribution network can be owned, operated and controlled by either an electric utility or a customer. If DG is utility-owned, then its operating cycle is well known as it is controlled by the utility. The shape of DG operating cycle depends on the purpose of its use in the distribution network. For example: a) Few limited operating time for peak load shaving. (Intemal combustion engines, small FC units). b) Limited operating time to share supplying the load with different operating cycles. (MT and FC). c) Base load power supply (MT and large FC). On the other hand, customer-owned DG operating cycle is not known unless there is a unit commitment agreement between the electric utility and the customer, which is unlikely to happen. However, small customerowned DG operating cycles is considered as a completely unpredictable process from the point of view of the electric utility. The utility has no control on their operation. This randomness changed the DSP problem from a deterministic problem to a non-deterministic one. 4.2.2. DG Location Problem. There are no clear restrictions for the location of DGs in the network, as there are no geographical limitations as in the case of substations. Hence, the only limitation is due to electrical requirements. If the DG is customer-owned then the utility has no control on its location because it is placed at the customers site. If the DG is utilityowned then the choice of its location is based on several electrical factors such as [4]: = Providing the required additional load demand. Reducing the system electric power losses and substations capacities. 9 Improving the system voltage profile. Also, DG has to he placed on feeders that do not disturb the existing protective devices coordinations and ratings.

For reliability purposes in case of islanding, the DG size must be greater than double of the required islanded load. The DG size can affect the system protection coordination schemes and devices as it affects the value of the short circuit current during fault. Therefore, as the DG size increases, the protection devices, fuses, reclosers and relays settings have to he readjusted and/or upgraded [ 6 ] .

5. Conclusions
DG as a source of active power in the distribution network will play a significant role in the distribution systems operation, structure, design and upgrading. DG technologies, benefits, concept and its valuable effect on the electricity market, give it a credibility to be used as a candidate option to solve the DSP problem. DG can defer bulk investments, minimize the system upgrading cost and provide the required power with high quality. Meanwhile, DG planning obstacles are determined and require careful study to avoid their influence on DSP decisions.

References
[l] Dugan, R.C.; McDennott, T.E.; Ball; G.J., Planning for Distributed Generation, IEEE Indushrsgi Applicarions Magazine, vol. 7, issue 2, pp. 8 W 8 , March-April 2001. [Z] Taylor, T.M.; Willis, H.L.; Engel, M.V., New Considerations for Distribution Network Planning and Design, Electricity Distribution. Part 1: Contributions. CIRED. 141hInternational Conference and Exhibition on (IEE Conr Publ. No. 438), vo1.6, pp. l / l -115, 1997. 131 Ding Xu; Girgis, A.A.,Optimal Load Shedding Strategy in Power Systems with Distributed Generation, Power Engineering Society Winter Meeting, 2001 IEEE, vol. 2,
pp. 788 -793,2001.
[4] W. EL-kbattam, M. M. A. Salama, Impact of Distributed

4.2.3. DG Size Problem. There are no clear restrictions for selecting the size and number of the DG to be installed in the network. However, some points can be taken as a guide for DGs size selection as follows: a) To improve the system voltage profile and reduce the power loss, it is sufficient to use DG of a total capacity of 10-20% of the total feeder demand [ 5 ] . While more DG size can be used to reduce the substation loading [4].

Generation on Voltage Profile in Deregulated Distribution System, Power Systems 2002 Conference, f Dishbuted Generation, Clemson, SC, IJSA, Impact o March 13-l5,2002. [SI Barker, P.P.; De Mello, R.W., Determining the Impact of Distributed Generation an Power Systems. 1. Radial Distribution Systems, Power Engineering Society Summer Meefing, 2000. IEEE, vol. 3, pp. 1645 -1656,
2000.

[6] G i r g i s ,A.; Brahma, S . , Effect of Distributed Generation on Protective Device Coordination in Distribution System, Power Engineering, LESCOPE OI. 2001, Conference on Large Engineering Systems, pp. 115-1 19,
2001.

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