Design of optimal layout for medium-voltage power networks is a common issue in electrical distribution planning. Technical constraints (radial structure, voltage drops, and equipment capacity), and reliability limits must be fulfilled. The function for minimizing includes investments, power losses, and quality of supply costs. We present in this paper an improved algorithm based on a branch-exchange technique to solve large-scale problems. A heuristic algorithm for solving a Euclidean Steiner problem is used to improve the network by including transshipment nodes.Index Terms-Branch exchange, network design, power system distribution planning, Steiner tree problems.

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