Introducing price feedback of local flexibility markets into distribution network planning

Increasing penetration of distributed energy resources in distribution networks is expected to cause congestion in the near future. While grid reinforcement is the standard approach to resolve such issues, utilizing demand-side flexibility provides a viable and cost-efficient alternative. In this work, we propose a decision making tool for distribution system operators that allows them to integrate flexibility procurement from local flexibility markets in their planning process. The tool estimates the future cost of procuring flexibility services and compares them to alternative measures such as grid reinforcement. Long time horizons are considered, as the lead time of grid reinforcement projects can be several years. Price feedback from local flexibility markets is used to calibrate and improve the estimations. Results indicate that the proposed tool can be used to estimate flexibility service cost over several years, aiding distribution system operators in defining a cost-efficient long-term distribution network development strategy.