Abstract
We address the problem of optimally re-routing the feeders of urban distribution network in Milano, Italy, which presents some peculiarities and significant design challenges. Milano has two separate medium-voltage (MV) distribution networks, previously operated by two different utilities, which grew up independently and incoordinately. This results in a system layout which is inefficient, redundant, and difficult to manage due to different operating procedures. The current utility UNARETI, which is in charge of the overall distribution system, aims at optimally integrating the two MV distribution networks and moving to a new specific layout that offers advantages from the perspectives of reliability and flexibility. We present a mixed-integer programming (MIP) approach for the design of a new network configuration satisfying the so-called 2-step ladder layout required by the planner. The model accounts for the main electrical constraints such as power flow equations, thermal limits of high-voltage (HV)/MV substation transformers, line thermal limits, and the maximum number of customers per feeder. Real power losses are taken into account via a quadratic formulation and a piecewise linear approximation. Computational tests on a small-scale system and on a part of the Milano distribution network are reported.
IN this paper, we describe the work on re-planning the medium-voltage (MV) urban distribution network in Milano, Italy, carried out within a long-term collaboration with UNARETI, the distribution system operator (DSO) of Milano. Before the deregulation in 1999, Milano had two separate distribution networks operated by two companies, which grew up independently and incoordinately. Recently, the two companies merged into UNARETI and today the main goal is to optimally integrate the two distribution networks and move to a specific new layout called 2-step ladder layout at the same time, which is selected and required by UNARETI planners.
The distribution network planning has attracted important research efforts from both university and utility companies. Reviews and surveys of the historical developments on the field are available in [
In [
A direct solution method to the optimal feeder routing problem of radial distribution systems is proposed in [
Moreover, among the PDP literature, some works are specifically related to urban distribution networks. For instance, [
Specifically, regarding losses, a multi-criterion algorithm is applied in [
A conceptual framework of resilience domain and its measurement approaches, especially a thorough conceptual framework of resilience as a subcategory of vulnerability in electric power systems is presented in [
As stated in [
Adopting a single-stage network expansion approach, we present mixed-integer programming (MIP) formulations to determine the optimum feeder routing of the primary MV distribution network taking into account not only the layout and electrical constraints but also power losses, which are crucial from the perspective of application. The objective is to minimize the sum of capital costs, i.e., installation of new lines, and operation costs, i.e., distribution network losses. In order to find a trade-off between solution accuracy and computation time, a quadratic formulation with power losses and a piecewise linear approximation are considered. Thus, the main contribution of the paper is to express and convert the traditional planning approaches in a mathematical model in order to make them more efficient and effective.
A simplified preliminary version of the model without power losses is summarized in [
The remainder of this paper is organized as follows. In Section II, the Milano urban distribution network and the particular 2-step ladder layout requirement are described, along with the advantages and disadvantages. In Section III, modeling issues related to the layout and power losses are presented. The detailed MIP models for feeder routing with layout constraints and losses are described in Section IV. Numerical results are reported in Section V and conclusions are given in Section VI.
The urban distribution network in Milano is spread over a metropolitan area of about 190 k
In general, as for urban distribution network, voltage drop is not a concern for the MV network in Milano. MV feeders are too short and costumers are sited relatively close to the feeding MV/LV substation to cause substantial voltage drops [
In terms of layout,

Fig. 1 Current and new 2-step ladder layouts. (a) Current layout. (b) New 2-step ladder layout.
Moreover, the distribution network in Milano shows some unnecessary and inefficient redundancy.

Fig. 2 View of distribution network in Milano.
The aim of the proposed methodology is to plan future upgrading of the distribution network in order to get a completely new optimized network layout.
A new layout called 2-step ladder layout is proposed in

Fig. 3 Example of a 2-step ladder layout.
The 2-step ladder layout consists of four MV feeders interconnected with each other. The system, which is operated radially, has four tie points which can be switched to connect feeders to alternative sources in case of outage. This kind of layout is suitable for densely populated areas such as the city of Milano, where the load density requires many connections, and therefore, the number of feeders does not increase substantially [
This type of layout, normally used by UNARETI planners, has advantages in terms of line capacity and voltage drop during normal operation as well as in contingency. Moreover, a layout standardization makes the network easier to be operated, reduces operation mistakes, and improves the scheduling of maintenance and repairing.
In order to model the 2-step ladder shape using mathematical programming approach, a directed graph is considered, containing the set of nodes (corresponding to HV/MV and MV/LV substations) and the set of edges (corresponding to the network connections). The goal is to determine a collection of additional edges to be activated so that the resulting network has a 2-step ladder layout and achieves a minimum cost.
As depicted in
Unlike tie nodes, source nodes are known in our case, which will be selected and provided as an output of the optimization process.
In the optimization, the following assumptions are considered.
1) Single-stage optimization approach only yields the final picture of the distribution network layout.
2) The distribution network has to be shaped with 2-step ladder layouts.
3) Balance equations are approximated by DC power flow in order to keep the model linear, but losses are considered as a posteriori. This will be presented in Section IV.
4) Substation transformers and feeders have to be loaded within their capabilities and operation constraints.
5) Constraints on the maximum number of customers per feeder are included in order to reduce the impact of interruptions in case of maintenance or fault of network elements. The utility company has to deal with a reward/penalty framework in terms of distribution network performance, which is positively affected by reducing the maximum number of customers per feeder.
In dense urban areas, distribution systems are dominated by limitations in terms of power capacity rather than voltage drop limitations. Therefore, voltage drop constraints are not included in the model. Considering the high load density, distributed generation is not an issue for the distribution network in Milano. Moreover, for the selection and size of conductor, according to UNARETI policies, a single standard cable type is considered suitable for the maintenance and repairing strategies.
Since the electrical transmission and distribution losses account for most of the power losses in the entire power system, and the largest amounts of these losses occur in MV and LV distribution lines, the feeder routing optimization should include power loss minimization.
The optimization model receives topological and electrical data as input such as HV/MV and MV/LV substations, existing connections, LV customers, MV/LV power demand, line data and so forth. The expected output is the optimal 2-step ladder layout which minimizes fixed costs related to the installation of new lines, and variable costs related to power losses, as shown in

Fig. 4 Outline of optimization process.
In this section, we present MIP formulations aiming at minimizing the sum of the installation costs of the new edges and the costs deriving from power losses, while taking into account the above-mentioned layout and electrical constraints. Real power losses are modeled either with a quadratic objective function or with a piecewise linear approximation.

Fig. 5 Definition of variables and inputs.
In the objective function (1), the first term corresponds to the fixed costs (due to the new edges), and the second one corresponds to the costs of real power losses along all paths.
(1) |
where is the installation cost of edge ; is the net present value coefficient of future real losses; Nyr is the number of years considered for real losses; Nheq is the number of equivalent peak power hours; and is the cost of losses of edge .
To take into account the existing edges, a fixed cost is considered for connections already in place.
Some layout constraints used to shape the 2-step ladder layout, and some electrical constraints to model physical phenomena, complete the mathematical formulation.
The layout constraints can be categorized based on the type of node considered, i.e., HV/MV substation node, MV/LV substation node, T-node and tie node. Constraints (2) and (3) are for HV/MV substation nodes and allow a single edge to leave each source node, where is the source node of path ; and K is the set of paths of the graph {1, 2, 3, 4}. Constraints (4)-(11) are for MV/LV substations. Each MV/LV substation must have two edges, except for tie nodes, which have one edge connected per path and . T-nodes have three edges connected and .
(2) |
(3) |
(4) |
(5) |
(6) |
(7) |
(8) |
(9) |
(10) |
(11) |
For example, for node 15 in
Constraints (12)-(20) link the variables , and . As shown in
(12) |
(13) |
(14) |
(15) |
(16) |
(17) |
(18) |
(19) |
(20) |
where S is the set of source nodes; and T is the set of tie nodes of the graph.
Constraints (16)-(20) complete the layout modeling. A node can have if and only if (constraints (16)). For example, in the case of paths 1 and 2, the four nodes selected as tie nodes must have and the corresponding variables and equal to 1 (constraints (17)-(20)). Moreover, to avoid double edges between nodes, constraints (21) is added to the model.
(21) |
Finally, constraint (22) is also included to guarantee a uniform allocation of MV/LV substations among the four possible paths.
(22) |
where is used to obtain the number of elements of the set. The electrical constraints are necessary to guarantee the feasibility of network operation. Constraint (23) represents the power balance equations at MV/LV substations while constraints (24)-(27) represent the power balance at the HV/MV substation level. The lines thermal limit is enforced by constraint (28), and (29) presents the maximum number of LV customers per feeder.
(23) |
(24) |
(25) |
(26) |
(27) |
(28) |
(29) |
where is the maximum allowed number of LV customers per feeder.
Constraints (30)-(33) are used to ensure the radial system operation. In fact, combining with and make it possible to impose the radiality operation of the 2-step ladder layout.
(30) |
(31) |
(32) |
(33) |
Real power losses are crucial from the perspective of application. In general, the power loss in a branch is given by the quadratic function , where and are the resistance and current of branch , respectively.
Define as the resistance of branch , as the nominal voltage, and as the nominal power factor, respectively. The quadratic objective function and linear constraints (QOF-LC) formulation then directly minimizes the following objective function subject to the above linear constraints (2)-(33):
(34) |
Clearly, (34) is quadratic in the variable . This is equivalent to the minimization of the linear objective function (1) while adding the following quadratic constraints:
(35) |
The resulting MIP formulation is referred to as linear objective function and quadratic constraints (LOF-QC) formulation.
In order to obtain an MILP formulation, we consider piecewise linear approximations of the convex objective function corresponding to real losses in terms of power flows [
A piecewise linear objective function and linear constraints (PLOF-LC) approximation with three pieces is shown in
(36) |
(37) |
(38) |

Fig. 6 Piecewise linearization with three pieces.
where mi is the slope; and qi is the y-intercept of the straight line i.
Clearly, the larger the number of pieces is, the more accurately real losses are approximated. For comparison purposes, a piecewise linear objective function and linear constraints (LOF-LC) approximation is also considered. The linear approximation is the tangent at the point of 8 MW.
In this Section, we present results on both a test network and a real power system. The different approaches discussed above are implemented in general algebraic modelling system (GAMS). CPLEX 12.0 is used for solving linear or quadratic MIP formulations. All simulations are performed on a PC with Intel Core i5-7300 3.50 GHz CPU with 16.0 GB memory, running 64-bit Windows 10. A CPU time limit of 60000 s for each instance is set.
Tests have been carried out on the 20-node test network shown in

Fig. 7 20-node test network.
The time horizon Nyr is set to be 20 years, which is the usual life time of underground cables. The resistance and thermal limit are for a cable Al , which is the standard cable installed by UNARETI.
The model with LOF-LC overestimates the losses, and results in a higher corresponding cost. The PLOF-LC shows a little underestimation of losses, which implies a lower cost of losses in the objective function. The LOF-QC turns out to be harder to solve than QOF-LC and runs out of memory, which makes the results different from QOF-LC.
The optimal layouts (solutions) obtained with the three formulations are shown in

Fig. 8 20-node network. (a) QOF-LC and PLOF-LC. (b) LOF-LC.
The best formulation (PLOF-LC) is tested on a real-world subnetwork made of 70 nodes (66 MV/LV substations and 4 HV/MV substation bus bars) isolated from the whole distribution network. The locations and connections of HV/MV and MV/LV substations already in place are depicted in

Fig. 9 Topological input data of 2-step ladder layout for a real-world subnetwork.
The blue lines are the existing connections. The dashed black lines represent connections which start in the subnetwork but end outside of this set. These connections are not considered as candidate here. The computation time limit is set to 100000 CPU seconds.

Fig. 10 Optimal 2-step ladder layout for a real-world subnetwork.

Fig. 11 Existing and new connections of 2-step ladder layout for a real-world subnetwork.
According to
Finally,

Fig. 12 Optimal 2-step ladder layout for a real-world subnetwork on Google Earth map.
The paper presents MIP models to optimally integrate the two MV distribution networks in Milano to achieve the required 2-step ladder layout.
The cable routes are kept, installed, or removed so as to minimize the capital costs and losses. The objective function and constraints are firstly explained. Moreover, advantages and disadvantages of four different model formulations are reported and verified on a test network. Since the piecewise linear approximation with three pieces leads to a good trade-off between network layout quality and computation time, it has been applied on a real subnetwork. Simulation results show a significant reduction of the distribution network extension using the proposed approach, which potentially increases the reliability of the network.
We are now working to improve the proposed model using a dynamic approach to take into account interactions between variables over time. Moreover, we are considering to adopt a robust approach to deal with traditional uncertainties related to long-term planning of distribution network expansion.
Acknowledgements
The authors are indebted to UNARETI for their support of the research and for allowing the results to be published.
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