An analysis of distribution planning under a regulatory regime: An integrated framework

Abstract

Distribution system planning is a multifaceted topic involving financial, regulatory, and system level analysis. The wide nature of the topic warrants a holistic study considering all aspects of analysis. The distribution utility is a natural monopoly that is subjected to utility regulation. The regulator can impact customer experience by strategically influencing the planning decisions of the utility. Hence, this paper reviews the existing utility regulation methods in the context of the distribution system and their efficacy in improving certain reliability and efficiency objectives. A two‐bus system is used to demonstrate the impact of classical models in alleviating reliability and efficiency issues through demand response. Further, a review is conducted on distribution system planning models without a regulatory regime, and suitable models for holistic analysis are identified. A two‐person complete information regulator and utility game with a comprehensive distribution system model at the lower level is proposed. A framework based on the Mixed Integer Bilevel Linear Program (MIBLP) is discussed to find the equilibrium point of the proposed game.

Digitalization Processes in Distribution Grids: A Comprehensive Review of Strategies and Challenges

“…Digital technologies significantly influence grid operations; they align with regulatory, safety, and environmental guidelines while improving efficiency and supporting sustainable management. The mixed-integer bilevel linear program (MIBLP) model [159] addresses distribution system planning within regulatory constraints, highlighting the impact of regulatory policies on utility operations and facilitating the adoption of new technologies.…”