The electrification of final consumptions and the spreading of distributed generation have fostered the search for new and more advanced electrical grid planning techniques, considering many of the aspects affecting electrical grids operation, such as their electrical and economic performance, as well as system reliability. Distribution network clustering is defined to be the division of the utility service territory into several high voltage–medium voltage substation service areas, and it represents one of the most important steps for grids planning. In this context, the purpose of this paper is to propose an innovative clustering algorithm based on Mixed Integer Linear Programming (MILP) formulation, able to take into account some fundamental aspects of the distribution networks planning process, such as the electrical losses along lines, the existing distribution network layout, and the reliability of the system. The approach, tested on the medium voltage network of the medium-sized city of Meran in the North of Italy, has proved to effectively manage the computational burden needed to model and optimize the structure of a complex distribution grid, as those that usually cover large urban areas.
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