The first part of this two-paper series describes the incorporation of demand response (DR) and energy storage systems (ESSs) in the joint distribution and generation expansion planning for isolated systems. The role of DR and ESS has recently attracted an increasing interest in power systems. However, previous models have not been completely adapted in order to treat DR and ESS on an equal footing. The model presented includes DR and ESS in the planning of insular distribution systems. Hence, this paper presents a novel model to decide the joint expansion planning of distributed generation and the distribution network considering the impact of ESS and price-dependent DR programs. The problem is formulated as a stochastic-programming-based model driven by the maximization of the net social benefit. The associated deterministic equivalent is formulated as a mixed-integer linear program suitable for commercially available software. The outcomes of the model are the location and size of new generation and storage units and the distribution assets to be installed, reinforced or replaced. In the second companion paper, an insular case study (La Graciosa, Canary Islands, Spain) is provided illustrating the effects of DR and ESS on social welfare.
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Asensio et al. (2016) studied this question.
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