Regulatory capital and social trade-offs in planning of smart distribution networks with application to demand response solutions

摘要: Abstract Under the current UK regulatory framework for electricity distribution networks, asset upgrades are planned with objectives of minimising both capital costs (and thus customer fees) and social such as those associated carbon emissions interruptions. This approach naturally results in economic trade-offs network solutions meant to reduce typically increase (sometimes significantly) costs, vice versa. can become an issue a smart grid context where new operational Demand Response (DR) may emerge. More specifically, even though there is general belief that will only provide benefits due their potential displace investments costly assets (e.g., lines substations), they also introduce increased expenditure, power losses compared networks upgraded assets. On other hand, flexibility inherent could be used balance different types leading attractive cost if properly modelled, quantified regulated. However, given fundamental “non-asset” nature DR, quantifying resulting so perform like-for-like comparison traditional planning strategies grand challenge. In this light, article proposes methodology explicitly model quantify planning, which incorporated into existing framework. The results, based on real show our proposed regulate trade-offs. By doing so, it possible encourage more efficient levels expenditure by deploying right mix asset-based DR-based solutions.