Optimal dispatch of generator set and distributed generation considering peak shaving in distribution networks of isolated areas affected by thermal congestion

Rising electricity demand and high temperatures significantly impact the transmission capacity and operational safety of distribution grids. This paper analyzes and evaluates the effect of Battery Energy Storage Systems (BESS) on reducing thermal congestion in distribution grids in accordance with Institute of Electrical and Electronics Engineer (IEEE) Standard 738. The analysis is conducted under high-temperature conditions and optimal dispatch using peak shaving strategies. The model was formulated as a continuous quadratic optimization problem, and was evaluated using Python software and the Interior Point Optimizer (IPOPT) solver. This model was applied to a case study in the municipality of Inírida, located in the Guainía Department, Colombia. The results demonstrate that integrating BESS reduces diesel fuel consumption by up to 6.305,4 gal/day and CO₂ emissions by up to 62.553,3 kg/day. Furthermore, energy dispatch optimization decreases generation costs by 9,3%, equivalent to USD 16.063,82 /day. These contributions enhance system stability and ensure compliance with grid thermal limits, achieving a 169,4% reduction .in distribution line thermal congestion. It is concluded that BESS are an effective solution for improving the management and performance of electricity grids under conditions when both electricity demand and temperatures are high. This paper represents a significant advance in understanding the impact of BESSs on optimizing energy dispatch and mitigating thermal congestion in distribution networks.