Economic assessment of distribution network reinforcement deferral through post-contingency demand response

This paper presents a methodology for the economic assessment of smarter solutions used for distribution network reinforcement planning; specifically, the methodology was developed to assess the economic value from deploying network reconfiguration and automation, and post-contingency Demand Side Response (DSR) as recommended by the Capacity to Customers (C2C) method, which is currently being tested in the UK at medium voltage levels (i.e., 11kV and 6.6kV). The C2C method combines the aforementioned smart solutions to increase distribution network capacity (limited by security considerations) and bring about several social benefits at the distribution level (e.g., reduced power losses and increased reliability); thus deferring or even averting costly network and substation reinforcements. The proposed methodology relies on scenarios, optimisations and a Cost Benefit Analysis (CBA) framework to assess the C2C method compared with traditional reinforcement practices. The approach is illustrated using a real UK distribution network where the C2C method is currently being tested, and general conclusions from other such networks are also discussed. The results highlight the conditions that encourage the deployment of C2C interventions as an alternative to or in combination with traditional reinforcements.