Distributed Energy Resource Expansion Planning Considering Supporting Policies

This paper proposes a comprehensive framework for distributed energy resource (DER) expansion planning from investors’ viewpoint based on a combination of dynamic programming algorithm and game theory. In this framework, different aspects of DER planning i.e. their uncertainties, risks, pollution, etc. are included. Wind turbines, gas engines and demand response (DR) programs are considered as DERs in this study. The intermittent nature and uncertainty of wind power generation and also uncertainty of demand response programs will cause the investors to consider risk in their investment decisions. In order to overcome this problem, a modified model has been derived to study the regulatory intervention impacts on wind expansion planning and implementing DR programs. Dynamic programming method is utilized for this problem solving and in each step, the Nash equilibrium point is calculated using Cournot model. A model based on intermittent nature of wind power generation and uncertainties of DR programs is developed which can calculate the optimal investment strategies. The effectiveness of the proposed model is proved through implementing on a test system.