Distribution system project selection based on the power quality value

This paper addresses the problem of project selection for the improvement of power distribution systems, in which projects have to be chosen in order to fit the distribution utility´s global budget. An analytical model is proposed to optimize the portfolio of selected projects, using the multi-objective genetic algorithm NSGA-II. Optimization criteria consider aspects of power quality, operational performance, number of consumers, and potential financial impacts of the projects. The value based optimization model prioritizes regional projects in a systemic way. The solution is a Pareto-optimal set of projects, representing the best project portfolios. The presented case studies show the changes in the choice of priority projects when power quality and operational performance are included in the analysis. The proposed method allows better planning of the distribution system, and helps in project selection and raising strategic investments.