Optimal interaction of photovoltaic investor (PVI) in maximizing total benefits of distribution network operator (DNO)

Abstract Evaluating the positive impacts of private investor (PI) contributions in improving distribution network (DN) technical, environmental and economic features are considered in the recent studies. In this paper photovoltaic investor (PVI) participates in improving technical constraints of DN. DN operator (DNO) is the owner of wind turbine (WT). The main functions are formed as benefit functions. Benefits which are obtained by improving technical constraints (impacts of contributing PVI and WTs in improving technical constraints) are written in the benefit functions. Technical constraints include: voltage deviation (VD), active and reactive power loss. By designating weight with high value to each of technical constraints, genetic algorithm (GA) solves the optimization problem. Different scenarios are considered in the siting and sizing problem. Furthermore, comprehensive study is done by defining benefit contribution parameter (ψ). Changing the value of ψ from 0 to 100%, gives the best interaction between PVI and DN operator (DNO). Since the presented optimal siting and sizing problem is formed as multi criteria, by applying multi‐attribute decision making approach based on technique for order preference by similarity to ideal solution (TOPSIS), the optimal contribution of DNO and PVI is determined. Obtained results from simulation reveal that in a case without sharing benefit between DNO and PVI, the PVI could not receive benefits from project (all of solutions are negative value) but in the case with benefit sharing, the project has attractiveness for the PVI (it is illustrated as a positive benefit values for PVI). The optimum solution is received by making a trade‐off between DNO and PVI benefits. The optimum values are 2.287E6 and 2.201E6, respectively.