LAUSR

Abstract Intentional islanding is becoming an important strategy to improve the reliability of smart distribution systems when the connection between the distribution grid and the upstream network is lost. In addition, the increase penetration of distributed generation and the presence of energy hubs have made intentional islanding a feasible solution. During islanding, an economic energy management is required. This functionality in smart grids is imbedded is smart meters to keep monitoring and controlling the formed islands. In this paper, a three layer optimization algorithm is proposed to determine the optimal islanding configuration of the system in its first layer, the optimal dispatch of distributed generation (DG), combined heat and power (CHP) units and boilers along with the optimal demand side management (DSM) in its second layer and finally, the optimal locations of phasor measurement units (PMU) in its third layer such that each island is completely observable. The proposed algorithm is applied to the distribution system of Alexandria, Egypt.