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Demand response, the reactive power output of distributed generation (DG), and network reconfiguration have significant impacts on a DG allocation strategy. In this context, a novel real-time price-based demand response formulation is integrated into the allocation model of DG. The tariff is regulated by the difference between the load and active power of renewable energy. Meanwhile, network reconfiguration and the capacity curve describing the active and reactive power limits of DG are included in the optimization model for promoting the allocation of DG. With these measures, the optimal allocation model of DG is established with the goal of maximizing the net annual profit while guaranteeing the efficient utilization of renewable energy. In addition, the uncertainties of renewable energy are considered on the basis of a two-stage robust optimization method. Finally, the entire optimization model is solved by the column and constraint generation algorithm in the IEEE 33-bus distribution system and a practical 99-bus distribution system. Numerical simulations show that the proposed model is effective in terms of improving both the usage of renewable energy and net annual profit.

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