Demand-side response (DR) and energy storage system (ESS) are both important means of providing operational flexibility to the power system. Thus, DR has a certain substitution role for ESS, but unlike DR, ESS planning has a coupling relationship between years, which makes it difficult to guarantee the reasonableness of the ESS planning results by considering only a single year. To achieve the optimal construction timing of ESS, this paper develops a consecutive year-by-year framework integrating DR and ESS to analyse and quantify the substitution effect of DR on energy storage while realizing year-by-year ESS planning. Our methods are as follows: (1) A consecutive year-by-year DR model and an ESS model are proposed; (2) These two models are combined together to achieve the purpose of considering DR in the ESS planning stage. Here, system reserve, renewable energy consumption, and preservation of power supply are given consideration to optimise the reliability and economy of the system; (3) The method is validated using a provincial real-world power grid in the eastern part of China. The optimal results of five consecutive years of planning show that DR substitutes 19.7% of the ESS capacity.
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