A one-leader multi-follower approach to distribution network development planning (Pre-publication)

The growing electrification of transportation, heating, and cooling will largely impact electricity distribution networks. To determine how to develop distribution networks, it is paramount to consider jointly the multi-year distribution network development plan and the grid users’ energy infrastructure evolution. To this end, we formulate a bilevel program in a one-leader multi-follower setting with the distribution network development plan as the upper level, while the lower level minimizes grid users’ energy costs. Solving this optimization problem allows for assessing the impact of exogenous factors such as grid tariffs on network development plans and grid user investment in distributed energy sources and storage. Some initial results are reported using a small test system.