Optimal capital investment strategy through a flexibility services approach
2023
Rauzins, Martins | Lusis, Peter | Lidaka, Eliza Liga
As the demand for electricity consumption and generation connection capacity to the infrastructure of the distribution system operator managed by JSC "Sadales tikls" (ST) increases, a shortage of available capacity is observed due to physical constraints of the network infrastructure. Historically, the company has addressed capacity constraints through capital investments in network upgrades, thereby increasing the nominal capacity of the elements installed in the network and increasing the capacity of the network. European experience shows that capital costs in network reinforcement can be deferred by offering the customers their desired capacity with temporary constraints. This study defines a process for designing an optimal investment strategy, which allows ST to compare the investment in network reinforcement against restrained capacity offer through customer demand flexibility. It was concluded that the concept of flexibility services versus reinforcing the existing network is the most cost-effective option to maintain a consistently high quality of energy supply while minimising the cost to the utility if the customer flexibility cost does not exceed 300 EUR/MWh. Adding that only by updating and improving input data, calculations and forecasts flexibility services can be further developed and implemented in Latvia.
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Publisher Latvia University of Life Sciences and Technologies
This bibliographic record has been provided by Fundamental Library of Latvia University of Life Sciences and Technologies