Optimal Distribution Investment Plan Based on the New Value Based Distribution System Reliability Assessment using Reliability Index

Abstract

We select the optimal distribution system investment plan, which has the largest ratio of the financial benefit and investment cost. We measure the financial benefit of investment plan based on the improvement level of reliability index on the target distribution system. However, in the classical value based distribution system reliability assessment (VBDRA), the financial benefit was measured based on the reliability index itself, so our approach is a new VBDRA. The improvement level of reliability index is converted to the financial benefit by multiplying the electricity interruption cost. In this study, we also introduce the reliability index calculation method based on three basic reliability parameters: average failure rate, average power outage time, and average annual power outage time. Then, we calculate the reliability index of six different distribution systems. Finally, we measure reliability index and financial benefits of three virtual distribution systems with different investment plans on distribution components. Based on the ratio of financial benefits to investment costs, we select the optimal distribution system investment plan. © 2022 Korean Institute of Electrical Engineers. All rights reserved.