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The implementation of capital budgeting analysis for distributed generation allocation problems
For the last 7 years, the Republic of Croatiahas been witnessing a sudden increase of distributed en Argyresources connecting to its power system. However, a significant problem is how to find the financial equilibrium whichwill satisfy the independent power producers on one side and the Distribution system operator on the other. In this paper, the authors discuss the capital budgeting analysis of distributed generation projects with a goal of maximizing their net present values. The evaluation of net present values will be the central tool for finding the optimal position ands ize of distributed generation units in the network. By simultaneously minimizing active power losses the interests of distribution system operator will not be neglected in this study. The power production of distributed generation and power consumption of network loads will be modeled with characteristic average daily power curves with discrete hour intervals. The prob-
lem will be solved using genetic algorithm, and realized in Matlab programming environment
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