Distribution Network Planning Considering Capacity Mechanisms and Flexibility

The increasing penetration of distributed energy resources (DERs) has posed challenges to the distribution system operator (DSO) from the operation and regulatory point of view. High penetration of DERs could have negative impacts on the performance of the distribution grid, and depending on the regulatory framework, the DSO's remuneration as well. In liberalized electrical systems, the focus on promoting eciency has led to the implementation of an incentive-based regulation that exerts additional pressure on the DSOs to reduce costs. Additionally, the European Parliament Directive 2009/72/EC establishes a regulatory unbundling among the distribution, production, and retailing activities within the same vertically integrated electric utility. A way of helping the DSO to cope with the posed challenges is by providing it with exibility. This exibility can be acquired from the planning stage, and later be used during the system operation. This exibility can stem from the DSO's ability to exert control on the demand and the supply side to balance the system and correct its operational state. Based on the European DSOs' current situation at facing the increasing penetration of DERs, this thesis investigates in non-wired exible grid tools to solve the distribution network expansion problem. The investigation focuses on exibility providers, in particular on energy storage systems and hydropower, and also on capacity mechanisms to translate the capacity from DERs into the grid's capacity for planning purposes. Given that the share of renewable sources among the DERs is increasing, and considering the importance of energy storage systems in providing exibility to balance renewable energy production, the eort has been turned on to developing a hydropower model and a generic storage model that t both planning and operational studies. Given the need for gearing the DERs' behavior into the DSO's decision making process during the planning and operational timescales, the design and implementation of a distribution capacity mechanism have been developed. The design of the capacity mechanism has been conceived considering its integration within the distribution network expansion problem. The outcomes of this thesis can be synthesized as follows: 1) A generic hydraulic/storage model provided with an equivalent marginal cost that aids in considering the impact of present decisions in the future costs. 2) A market oriented distribution capacity mechanism that gears DERs and the DSOs to benefit mutually. 3) A distribution network expansion planning formulation that integrates the capacity resource from DERs through the distribution capacity mechanism