Toward a Smart Distribution System Expansion Planning by Considering Demand Response Resources

This paper presents a novel concept of "smart distribution system expansion planning (SDEP)" which expands the concept of demand response programs to be dealt with the long term horizon time. The proposed framework, integrates demand response resources (DRRs) as virtual distributed generation (VDG) resources into the distribution expansion planning. The main aim of this paper is to develop and initial test of the proposed model of SDEP to include DRRs which are one of the most important components to construct smart grid. SDEP is modeled mathematically as an optimization problem and solved using particle swarm optimization algorithm. The objective function of the optimization problem is to minimize the total cost of lines’ installation, maintenance, demand response persuasion, energy losses as well as reliability. Furthermore, the problem is subject to the constraints including radiality and connectivity of the distribution system, permissible voltage levels, the capacity of lines, and the maximum penetration level of demand response. Based on two sample test systems, the simulation results confirmed that the consideration of DRRs simultaneously with distribution system expansion can have economical profit for distribution planners.