The penetration limits of distributed generation (DG) into the existing distribution substations are often expressed as a function of the feeder hosting capacity (headroom). In feeders serving consumer demand, the nominal power should not exceed 25% of the nominal power of the transformer. It is then important to estimate the maximum reliable operation of the network as well as the limits imposed by the power quality standards through the evaluation of the hosting capacity (headroom) of the existing distribution feeder substation.The study aims at developing a novel algorithm for the location of permissible headroom in a power substation for maximum active power supply by distributed generators into each system bus without causing voltage violations. The developed novel algorithm can be used by utility companies to select feeder substations that have permissible headroom capacity for DG installation. The modeling and optimization were carried out in Power System Software for Engineers (PSS/E) environment using the IEEE 14 – bus test system to assess the efficacy of the novel algorithm. The results obtained from the case study shows that only four (4) feeder substations out of twenty – one (21) have the permissible headroom capacity for DG connections.
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