Techno-Economic Analysis of Residential Customers’ Participation in Distribution Network Planning

Private investors (PI), more specifically the residential ones, can play an important role in the power networks. However, their impact on network planning may not be properly considered. In this paper, a framework of system planning with the cooperation of residential customers is presented. Residential customers are supposed to be potential investors who can install a Photovoltaic (PV)-Battery system and help the system operator to reach a lower peak of load. Due to the presence of two participants in the problem, a two-layer model is expanded. At the first layer, the optimum structure of the system based on the modified load levels is obtained. However, at the second layer, the participant of residential customers to reach mentioned modified load levels are evaluated. In order to assess the problem from residential investors’ standpoint, payback period years (PBP) as an economic criterion is assumed. To verify the proposed model, a 54-bus distribution test system is employed. Obtained results demonstrate how the residential customer can affect power network planning.