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Coordination of Distribution Network Reinforcement and DER Planning in Competitive Market

Since distributed energy resources (DERs) can provide capacity in distribution system, distribution network reinforcement interacts with DER planning (DERP) for meeting load growth. This article proposes the coordination of distribution network reinforcement and DER planning in competitive market. The model is formulated as a multi-stage programming. In first stage, distribution companies (DISCOs) and DER aggregators (DERAs) make bidding plans for network reinforcements and DERP. In second stage, DSO checks the network security. If the check fails, DSO sends capacity signals to DISCOs and DERAs for more capacities. In third stage, the distributed market is cleared by DSO’s optimal operation problem and distribution locational marginal price (DLMP) is returned to DERAs as price signal. An iterative algorithm is proposed to solve the multi-stage model. The algorithm embodies the process of information interaction among DISCOs, DERAs, and DSO, where DISCOs and DERAs compete in capacity market under DSO’s supervision. Numerical results on IEEE 33-system and an actual 141-bus system demonstrate that the proposed model coordinates distribution network reinforcement and DERP in competitive market.