Peak-load pricing based planning for distribution networks under change

Distribution network development planning is a complex task due to the size of a typical distribution network, the interconnectivity of its elements and the presence of various uncertainties. The recent technological and organizational changes in the electric industry sector have had an influence on the operations and planning objectives of distribution network systems. New price regulation, technologies, and types of customer demand require new paradigms of distribution network planning and operations. The corresponding models in support of these new paradigms should include not only the information about load forecast, but economic analysis, risk assessment and the impact of the new technologies. In this paper, we propose a model for distribution development planning that is based on the concept of peak-load pricing and optimal distribution capacity expansion