The increasing penetration of distributed generators (DGs) makes further interconnection of multiple energy carriers possible. In this paper, an integration model comprising IEEE-33 bus distribution network and a correspondingly designed water system is proposed with DG coupling of thermal and electrical energy. The integrated energy system incorporates the constraints of the distribution network, water system, and DGs and ensures that the electrical and thermal demands of the integrated energy system are satisfied simultaneously by energy flow. An optimal procedure including optimal sizing, positioning, and operation of DGs and gas boilers in a given system was implemented while minimizing the total costs of investment and operation. The model constitutes a mixed integer nonlinear problem, as it takes the power flow calculation and the nonlinear characteristics of DG efficiency into consideration. Therefore, the particle swarm optimization algorithm is employed to simulate the proposed model. The simulation results in conjunction with numerical studies reveal the impact of the water system on the optimal configuration of DGs and the advantages of the integrated energy system on economic considerations, voltage level, and net loss.

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