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In this paper, the method for selecting the optimal location of auto reclosers in distribution system considering system reliability is proposed. The Monte Carlo simulation (MCS) technique was utilized for evaluating the reliability of the distribution system. The MATLAB program is used to create the MCS model. In the MCS model, the exponential distribution function is used to generate time to failure (TTF) and time to repair (TTR) of each component in the distribution system in order to model the operation status profile of each component. The three reliability indices consisting of the system average interruption frequency index (SAIFI), the system average interruption duration index (SAIDI) and the energy not supplied (ENS) are taken into account in the process of optimal location evaluation of auto recloser. Moreover, the benefit-cost analysis of auto recloser installation considering the life cycle cost of the auto recloser and the system reliability is presented. Finally, in order to demonstrate the effectiveness of the proposed method, the IEEE Roy Billinton Test System BUS-4 (IEEE RBTS BUS-4) and the 22 kV distribution system of Electricite Due Laos in Attapeu province, Laos PDR is utilized. From the simulation results, it can be concluded that the auto reclosers should be located around the center of the distribution system
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