An Integrated Optimization Framework for the Distribution Grid Expansion Planning

Distribution Networks are stressed by the mass adoption of distributed energy
resources and new electric loads, leading to capacity issues, voltage limit violations,
and volatility. An intelligent approach is needed as an alternative to costly brute-force
reinforcement. This strategy focuses on increasing grid "smartness" and hosting
capacity by using flexible operation and tariffs that incentivize flexible consumption,
turning key assets into part of the solution.
We adapt the Distribution Network Expansion Planning framework to embed network
users' optimal investment and operation decisions for distributed assets. We address
tariff design impact by comparing two strategies: a fully centralized formulation, with
simultaneous network and user optimization, and a decentralized approach where user
optimization precedes Distribution system operator decisions. The proposed method is
applied to the design of a virtual campus electrical grid. To ensure computational
tractability, we employ spatial reduction, representative day selection, and linearization
techniques.