Investment Model for Cost-effective Integration of Solar PV Capacity under Uncertainty using a Portfolio of Energy Storage and Soft Open Points

Energy storage (ES) and soft open point (SOP) constitute technologies that can address the challenge related to the need for considerable investment in distribution networks in the near future for the safe accommodation of new solar PV capacity. Since the PV penetration is likely to happen in an uncertain manner, network planners may need to hedge against the risk of stranded assets. Within such an uncertain setting, continuing to rely on the traditional deterministic planning frameworks may lead to stranded assets while reducing the value of new technologies. A stochastic optimization model is proposed that considers investment in both conventional and nonconventional network assets with the goal of alleviating constraints associated with uncertain solar PV generation capacity connections. A case study shows that ES and SOP hold considerable value of flexibility (option value) to deal with uncertainty that can be captured solely via stochastic planning.