Optimal Placement of Distributed Generation in a Dedicated Industrial Network Subject to Process Constraints Addressing Normal and Emergency Conditions

ABSTRACT

This paper aims to determine the optimal location and capacity of distributed generation (DG) resources, as well as the optimal share of electricity purchase through the bilateral contract for a dedicated industrial network associated with oil and gas. The objective is to minimise electricity supply costs in the network conditions, maximise resilience against loss of the upstream network, and simultaneously minimise investment costs. The weighted sum of disconnected loads is minimised as the resilience index, which is influenced by both the importance degree of loads and the interdependence of loads with each other, which is related to the operational constraints and the sequence of industrial processes for oil and gas production. Regarding engineering considerations, a backup capacity is allocated for each industrial complex where DG units are installed. The presented model is solved using the Non‐Dominated Sorting Genetic Algorithm II (NSGA‐II). To select the preferred solution among the non‐dominated solutions, a selection index is defined, which is influenced by the cost‐benefit ratio and the resilience index. The proposed model is implemented on a real network under different scenarios, and the results are analysed. In all cases, the results show the procedure's effectiveness and quality and validate the proposed model.