Abstract
This chapter presents new analytical expressions to efficiently capture the optimal power factor of each distributed Generation (DG) unit for reducing energy losses and enhancing voltage stability over a given planning horizon. These expressions are based on the derivation of a multiobjective index, which is formulated as a combination of active and reactive power loss indices. The decision for the optimal location, size and number of DG units is then obtained through a benefit–cost analysis. Here, the total benefit includes energy sales and additional benefits, namely energy loss reduction, network upgrade deferral and emission reduction. The total cost is a sum of capital, operation and maintenance costs. The simulation results show that the additional benefits are imperative. Inclusion of these in the analysis can yield faster DG investment recovery.
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