Optimal Sitting and Sizing of Energy Storage Systems in a Smart Distribution Network Considering Network Constraints and Demand Response Program

Demand response program (DRP) and energy storage systems (ESSs) are two main tools for load management in smart grids. They can make distribution networks more reliable without costly upgrades for substation construction or lines reinforcement. This work proposes an optimization framework of sitting and sizing of ESSs in a smart distribution network in the presence of DRP and considering renewable energy sources (RESs) effects and network constraints. The proposed objective function includes two terms: 1) minimizing the total investment costs of ESSs; 2) minimizing the cost of active losses and the power purchased from the upstream grid and diesel generators. DRP can reduce operation costs by shifting some loads from hours with high demand to hours with lower demand and so can reduce network losses and help in peak load shaving process. In order to solve the proposed optimization problem, a mixed-integer non-linear programming (MINLP) model is constructed and solved using DICOPT solver by GAMS optimization software. A modified 33-bus distribution network is considered, and the results of three different cases are compared. Finally, it can be noted that total cost of the network in case 2, with optimal ESSs allocation, is reduced by 4.9% compared with the base case, while this reduction is about 20% in case 3 with considering DRP beside ESSs allocation.