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Abstract
Distribution system planning, design and operation is facing a major change in paradigm due to deregulation of the power industry and advancements in DG technologies. Proper planning is the key to determine the best expansion strategies to provide reliable and economic services to the customer. In classical planning, the load growth typically is met by adding a new substation or upgrading the existing substation capacity along with the primary distribution feeders. Today, the rapid advances in DG technology and their numerous benefits have made them an attractive alternative to the distribution companies in their planning tasks. A mixed integer non-linear model for implementing DG (micro-turbine) as an attractive option in distribution system planning was able to find out the optimal DG capacity and location to serve the forecasted peak demand. The aim of the model is to reduce the total planning cost and to deal with different scenarios which vary from expanding of an existing substation and adding new feeders to purchasing power from an existing intertie to meet the load demand growth