Abstract
In recent decades, interest in placing renewable resources in conventional power systems has increased because of their ability to reduce fossil fuel consumption, which leads to the preservation of the environment. In this paper, a new iterative based optimization algorithm is proposed in order to determine the minimum number of states that can precisely describe or represent the behavior of wind speed and solar irradiance in operational planning problems. This algorithm is evaluated using a power system planning problem. For instance, the renewable resources are optimally allocated and sized using a probabilistic optimization model for distribution systems in order to minimize the annual energy losses. The proposed algorithm takes into account the annual energy losses and total DG penetration level and considers them as an indication of how far the proposed method's outcomes are from the actual results.