An innovative approach for distribution network reinforcement planning: Using DER flexibility to minimize investment under uncertainty

Abstract

The increasing integration of Distributed Energy Resources (DER) in electricity networks has required an improvement in the network management procedures. While the operation paradigm is evolving and adapting to the new network features, the planning approach is rather inefficient as network assets are usually oversized to meet the worst-case scenario. In this regard, this paper presents an innovative methodology that integrates the potential flexibility of DER into the planning process, in an attempt to bridge the gap between current network operation approaches and the planning methods. It includes an analysis of future scenarios, providing different reinforcement plans considering the realistic network operation for those scenarios. The proposed optimal design of the reinforcement plans has two complementary processes: First to optimize flexible resources in their owner's perspective and second to reschedule the flexible resources’ operation when the DSO needs to solve technical problems. The model has been tested in a typical Portuguese medium voltage network using future scenarios of DER integration from ENTSO-E. The results conclude that the proposed methodology leads to cost-effective solutions, which provide a better use of flexible resources, deferring high capital investments in network reinforcement.