A Framework to Split the Benefits of DR between Wind Integration and Network Management

In power systems today, considerable developments are being made in the energy transition from centralized fossil fuels to renewable distributed generation (DG) sources. However, this ongoing progress has presented several challenges to the operation and planning of distribution systems due to the variability of intermittent renewable generation. Demand response (DR) is widely regarded as a feasible tool to provide a seamless transition by altering the load profiles according to the intermittent generation profile. However, the resultant volatile power flows can be taxing for network capacity. This paper offers a framework from the distribution system operator's perspective for the optimal utilization of DR between DG curtailment mitigation and network management. The application of the developed framework to a generic Finnish distribution system demonstrates that the benefits of DR should be envisioned for network management as long as the wind curtailment rate is below a certain level. This means that, beyond the threshold energy curtailment rate, the distribution system operator would be more economically efficient by making network reinforcements.