In this paper, a new methodology for the optimal investment in distributed generation is presented, based on an optimal allocation of combined DG and capacitor units to alleviate network voltage constraints and reduce the interconnection cost of renewable generation integration in public medium voltage distribution networks. An analytical optimization method is developed, with the inclusion of practical considerations that are typically neglected in developed works: network topology reconfiguration and the geographical data of the generation land-use and network infrastructure. Powerful results concluded from a sensitivity analysis study of the most impacted parts of the network by the variation of active and reactive power injection under network topology reconfiguration are used as a basis for capacitor units placement. A case study, with two meshed IEEE 15-bus feeders and a new DG to connect, geographical dispersed, are used to simulate the performance of the proposed approach. A cost evaluation of the obtained results proves the effectiveness of the proposed approach to reduce the required charges for connecting new renewable generation units in medium voltage distribution system.
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