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Optimal Allocation of Distributed Generation in Micro-Grid Based on the Theory of Life Cycle Cost

In order to solve the problems of the optimal locations, types and sizes of DG (distributed generation) in an islanded micro-grid, which contains wind turbine, photovoltaic, diesel engine, energy storage device and micro gas turbine. The economic model of optimal allocation was built with the objective function that took LCC (life cycle cost) of DGs and active power loss cost into account. The GA (genetic algorithm) was used to optimize the planning of DG and the optimal scheme was attained. The model comprehensively evaluates the economy of the five kinds of DG in the view of LCC theory, and simultaneously realizes the optimal locations, types and sizes considering the differences of DGs and active power loss of the network. Through the case analysis, the results show this model and method can solve the problem of optimal allocation of DG effectively. It is very practical to guide investing and constructing micro-grid for the investors.