Reliability Optimization of Smart Grid Based on Optimal Failure Rate Using Distributed Generation

Abstract This paper evaluates the optimal budget of distributed generation (DG) units that could be used to substitute preventive maintenance in an electric power distribution system. Preventive maintenance is a tradition performed on power distribution system to reduce its failure rate and increase its reliability. In order to perform this, a yearly budget is allocated. As time goes on, this budget becomes significant. With the aim to safe cost, this research has investigated on how DG units could be used as a backup system whenever there is a failure in the grid while waiting for the fault to be remediated. A method has been proposed on the time length above which the DG units as backup systems become more economical over the yearly preventive maintenance. Results have shown that when this duration is below the lifespan of the DG units used, it is feasible and DG units become the cheapest option.