Distribution systems are the part of power systems that deliver energy from the area supply to the customers. The reliability indices sought-after are frequency and mean duration of interruptions and the non-delivered energy (NDE). To improve these indices, technical and organizational measures are considered. When decisions are made about the level of reliability to be achieved in a system, an attention must be paid to the economic factors, such as the incremental costs of reliability, the benefits expected from a change in reliability, and the allocation of the reliability investment among the system. However, an objective function is defined with the goal to determine an optimal balance between the gains realized from higher reliability and the cost of providing it. This function, minimizes the sum of costs of investments, operation expenses (losses) and economic inconvenience ( damage caused to customers ). In this paper, an application is done for an Algerian electric distribution system by simulation . The actual state of the system is undertaken, and its reliability indices are compared with those computed under the measures already described. The results acquired, show major advances and contribute further on the understanding the relative importance of the economic aspects of reliability
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