Abstract
Connection of a significant amount of distributed generation, such as solar photovoltaic (PV) capacity, may lead to problems in distribution networks due to violations of distribution network hosting capacity (HC) limits. HC enhancement techniques, such as energy storage, could increase the allowable PV penetration level in the distribution network, reducing the need for transmission and large-scale generation expansion. However, current approaches for transmission and generation expansion planning do not account for distribution network HC limits. As a consequence, it is hard to quantify the impact and benefits of HC enhancement in the context of long-term grid expansion planning. This paper presents a novel integrated planning approach, combining a two-stage transmission and generation expansion planning model with a distribution network hosting capacity assessment, which allows for inclusion of detailed distribution network constraints We test this method on a stylized representation of the Malaysian grid. Our results show that distribution constraints have a significant impact on optimal transmission expansion plans and significantly increase overall system costs. HC enhancement in the form of battery storage does not significantly mitigate this but does lead to a cost decrease regardless of distribution network constraints. We also show how our approach can identify the key interactions between transmission and distribution networks in systems with high levels of renewable and storage technologies. In particular, HC enhancement with battery storage can act as a substitute or complement to line investment, depending on the renewable energy penetration, the storage location and the level of coordination in the network. © 2019 by the authors.