Optimal allocation of unified power quality conditioner in the smart distribution grids

Abstract

The optimal operation of current distribution networks has a great importance due to growing electrical demand and significant power losses. In this paper, the optimal allocation of unified power quality conditioner (UPQC) in smart grid with responsive loads is investigated as an appropriate solution to reduce power losses. Also, in order to consider different consumption patterns and to predict the demand with the lowest error, different linear and nonlinear models of responsive loads are taken into account. New pricing method in demand response programs (DRPs) is another concept which is developed in the paper by which optimal electricity prices in DRP during peak, off-peak, and valley periods are determined. Moreover, DRPs are prioritized by the Topsis method based on the different Utility’s policies. The final proposed model has been applied on the IEEE 12-bus, IEEE 33-bus, and the practical 94-bus Portuguese RDS distribution system. The results show that the UPQC allocation in the presence of DRPs is a win–win game both for the Utility and for customers.