Networked-Constrained DER Valuation in Distribution Networks

Distributed energy resources (DERs) provide various benefits to distribution networks, including the enhancement of reliability, resilience, sustainability, security, energy efficiency, and deferral of capacity upgrades, where each benefit should be valued individually. Accordingly, DER valuation which corresponds with its stated objective in a distribution network is viewed as a challenging task in electric power systems. This paper presents a method to calculate the valuable portion of installed DERs regarding their contribution to the network capacity upgrade deferral. The proposed approach will assign priority-based marginal values to existing DER locations in a distribution network and calculates the corresponding DER amounts for the deferral of capacity upgrades, which is based on respective locational marginal values. The proposed method utilizes the DistFlow method for DER valuation that considers branch flow constraints in radial distribution networks. The IEEE 33 and the modified IEEE 123 node distribution networks are studied in which several scenarios are analyzed to demonstrate the merits of the proposed method. The results provide additional insights on distribution networked-constrained DER valuation and demonstrate that the DER valuation can provide an alternative for deferring capacity upgrades economically in a distribution network.