Exploring the impact of the energy transition on electricity distribution systems: The beginning of a journey in search of equilibrium in the game between the network operator and its users

Abstract

In the contemporary landscape, power systems are undergoing significant transformations driven by the imperative need for an energy transition towards a completely decarbonized energy system. This master thesis, in particular, focuses on how distribution network operators should plan this transformation considering they have to face both a massive integration of renewable energy sources (RES) and an increased electrification of mobility, heating and industrial processes, through the use of low-carbon technologies (LCTs). This is the so-called distribution network development planning problem DNDP.

This master thesis lays the foundation for a broader research project whose purpose is to develop a new framework to solve the DNDP problem based on a co-optimization approach. This approach distinguishes from previous works as it models the interactions between the distribution network operator and its users, whose standpoints were previoulsy neglected. We translated our co-optimization framework into a bilevel mathematical optimization program where the upper-level represents the DNO's optimization program, while the lower-level models the aggregation of the optimization programs of all its grid users.

In conclusion, this research not only provides a first bilevel formulation for the DNDP problem but also establishes a tool for exploring various setups of the bilevel problem. This tool facilitated the execution of a preliminary sensitivity analysis, the outcomes of which shed light on the equilibrium dynamics between the strategies of the distribution network operator and its users.