Multiobjective optimization and decision-making for DG planning considering benefits between distribution company and DGs owner

•We build formulations balancing the interests between different interest groups.•The candidate location sets of DG were proposed for decreasing search space.•An modified NSGA method is introduced to improve the efficiency of algorithm.•The decision-making analysis method is employed to analyze Pareto-front solutions.

Environmental concerns and fossil fuels uncertainties have resulted in promotion of multi-source and multi-type distributed generation (DG). However, the development of DG has brought new challenges to distribution system. This paper proposes a multiobjective optimization and decision-making methodology for determining size and site of multi-source and multi-type DG in distribution networks. The proposed method is based on the combination of analytical method and multi-objective optimization method and set pair of analysis (SPA). The comprehensive analysis of the loss sensitivity factor, voltage profile and reliability gave DG candidate locations. The multi-objective optimization method is based on an already-known but suitably modified Non-Dominated Sorting Genetic Algorithm (NSGA) to solve the constructed formulations, which include maximizing benefits of DG owner and Distribution Companies (DisCo) while meeting some constraints. The objective not only includes costs for DG investment, DG operation and maintenance, purchase of power by DisCo but also involving quantization for improvement of losses, voltage, reliability, etc. SPA, which is a multi-attribute decision analysis, is applied to obtain the synthetic priority of pareto solutions and carry out rank stability analysis. Furthermore, the proposed technique is applied to 37-bus distribution network. The results show that the proposed method is fast, reliable and available to determine size and site of DG as well as balance benefits between DG owner and DisCo.