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This paper aims at proposing a mixed-integer linear formulation to incorporate reliability-oriented costs into the expansion planning model of electricity distribution networks. In this respect, revenue lost associated with the undelivered energy caused by network interruptions as well as costs incurred by the widely used reward–penalty regulations is considered as the major reliability-related costs from distribution companies point of view. A set of mixed-integer linear equations is proposed to calculate the most common distribution system reliability indices, i.e., expected energy not served, system average interruption frequency index, and system average interruption duration index. It is found that these equations can also facilitate the formulation of radiality constraint in the presence of distributed generation units. Moreover, application of the proposed method is investigated through various case studies performed on two test distribution networks with 24 and 54 nodes.

MILP Model of Electricity Distribution System Expansion Planning Considering Incentive Reliability Regulations