A techno-economic analysis of photovoltaic hosting capacity of distribution networks

The electricity networks are transforming into bi-directional due to the integration of distributed energy resources (DERs). However, the widespread adoption of DERs such as photovoltaics (PVs) or electric vehicles (EVs) introduces technical and economic challenges in terms of energy losses. This dissertation investigates the impacts of rising PV penetration from both technical and economic perspectives of distribution system operators (DSOs). In addition, it explores the prosumers’ role to support a carbon-neutral future. In this context, the concept of economical PV hosting capacity (HC) is introduced to account for the cost of energy losses. This analysis shows that the economic limits are more restrictive for PV penetration and are violated before traditional technical limits. This highlights the relevance and importance of cost-based planning for future renewable energy targets. Accordingly, this dissertation analyzes the cost optimal method to improve PV HC and presented a comparison between PV curtailment and network upgrade to accommodate increasing PVs. Consumers’ PV curtailment is applied to ensure network stability. As a result, the DSOs compensate this curtailed PV as payments to prosumers, serving as an initial measure to defer network upgrades. Eventually, a breakeven point is identified where upgrade investments become economically feasible due to the continuously increasing curtailment compensation costs. The role of prosumers is important in DER integration considering the increasing adoption of both PVs and EVs. Therefore, the dissertation later examines the energy management strategies of prosumers to estimate their flexibility potential for renewable integration and utilization. In this regard, the decision making of customers is evaluated both independently and in coordination with other network entities. A Stackelberg game-theory model is implemented to investigate the interaction of customers with the wind aggregator to fulfill both economic and energy management objectives. Finally, the analysis is extended to the game-theoretic modeling for customer–DSO interactions to facilitate renewable integration. This helps to analyze the PV capacity margin under self-consumption and export scenarios. In essence, the findings of the dissertation underscore the importance of economic evaluation for future renewable energy integration. In addition, the value of the incentive structure and coordinated operation of different stakeholders is demonstrated to enable higher integration of both PVs and wind.