This thesis presented an optimization technique to determine the optimal capacity and location of distributed generation (DG), to improve system stability during and after a disturbance in the electrical system. The optimization algorithm employed discretized power systems dynamic equations as equality constraints in a non linear programming framework. The IEEE 14 Bus Test System and the Electrical System of Puerto Rico were used as models for the simulations. Several cases were analyzed and presented to determine the stability improvement by DG. Simulation results were presented through several plots and figures in order to appreciate the convergence and dynamic response of the electrical system. The Optimal Capacity of Distributed Generation (OCDG) algorithm was able to reach the optimal solution, accurately for each case. Simulations of the electrical system of Puerto Rico show that the main DG penetration was in the north and east of the island. Optimal DG penetration supports the network, improving the rotor angle stability and voltage stability during and after a disturbance. Results demonstrated the advantages of DG in the electrical system of Puerto Rico. The methodology presented could be further developed to optimally incorporate alternative energy technologies in the production of electrical energy.
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