Power distribution network design considering the distributed generations and differential and dynamic pricing

In this study, a power distribution network design model is developed considering voltage control, as well as differential and dynamic pricing schemes. The objective is to maximize power distribution network profits under uncertain demands and parameters, such as power generation capacity, investment and generation cost of renewable distributed generation units, and the penalty budget for unsatisfied demands. The model determines the percentage of the power supply to the customer groups, the amount of power supplied to each customer group, the technology and capacity of renewable distributed generation units, and the prices offered. The proposed pricing scheme is differential for different types of customers with allowable voltage limits. The price is dynamic according to the planning time, including low, medium, and peak times. A fuzzy stochastic programming approach is developed to solve this problem. By simultaneously using triangular crisp numbers and probabilistic variables, the fuzzy stochastic programming integrates the fuzzy and stochastic approaches to deal with the uncertainty of demand and parameters. The numerical analysis shows that, as the confidence level decreases, the capacity of renewable distributed generation units and the profit increase. The results also show that when the decision maker responds to the uncertainty in demand with a high confidence level, the optimum profit can be obtained; approximately 55.90% of the power is supplied to low-demand customers. •a power distribution network design model is developed.•Considering voltage control and differential and dynamic pricing scheme.•a fuzzy stochastic programming approach is developed to solve this problem.•The capacity of RDG units and the profit increase as the confidence level decreases.