Integrated Modelling of Distribution Networks for Strategic Valuation of Distributed Energy Resources Deployment and Investment

Abstract

Renewable generation such as rooftop photovoltaic systems constitutes an increasingly important part of the electricity supply mix. However, increasing renewable penetration on distribution networks has in many jurisdictions reached levels where network issues have started to emerge, including over-voltages, reverse power flows and phase unbalance. In response to these issues, distribution network service providers (DNSPs) have the option to invest in network augmentation to accommodate the increasing uptake of renewable generation, but it is often expensive and time-consuming. On the other hand, flexible distributed energy resources (DER) such as battery energy storage systems have the potential to become an economically viable alternative with its continuous cost reduction. However, very little work has assessed the extent to which the behind-the-meter DER investments, equipped by optimisation-based home energy management systems for optimal DER scheduling, will benefit the network and DNSPs. This is because solving DER scheduling optimisation problems typically requires great computation time, and is therefore impractical within MC studies underpinned by techno-economic assessments. To this end, this thesis proposes a systematic techno-economic assessment framework on customer-owned and utility-owned DER, focusing on specific topics including (i) probabilistic technical impact assessment of schedulable DER such as residential PV-battery systems that are equipped by optimisation-based HEM on distribution networks; (ii) economic assessment on DER investments, incorporating network constraints, using real options valuation; and (iii) assessment on policies and regulations for improving network resource allocation and coordination for DER hosting capacity using game-theoretic analysis.