Combinational mechanism for generation capacity and network reinforcement planning

The aim is to present a novel mechanism for the simultaneous generation capacity and network reinforcement planning. The target is the maximisation of network capability to absorb new generation capacity in the most economic way. Shadow prices (Lagrange multipliers) owing to network constraints produced during the allocation of new capacity are used to define the most profitable investments. The final product of the mechanism is an investment plan, which can be used by Network Operators or other potential investors as a guide to which equipment and in which order should be upgraded. The model used allows the planner to estimate future reactive flows and the impact of new generation on expected fault currents. Therefore apart from investments on lines and transformers, the suggested mechanism also considers investments in reactive power compensation and switchgear. The proposed mechanism was tested on a typical 12-bus distribution network, which was assumed to have three candidate locations for new distributed generation and one connection to the grid. The results demonstrate the benefits from the proposed approach to simultaneous generation capacity and network reinforcement planning.