Distributed flexibility as a cost-effective alternative to grid reinforcement

Abstract: The deployment of distributed photovoltaics (PV) in low-voltage networks may cause technical issues such as voltage rises, line ampacity violations, and transformer overloading for distribution system operators (DSOs). These problems may induce high grid reinforcement costs. In this work, we assume the DSO can control each prosumer's battery and PV system. Under such assumptions, we evaluate the cost of providing flexibility and compare it with grid reinforcement costs. Our results highlight that using distributed flexibility is more profitable than reinforcing a low-voltage network until the PV generation covers 145% of the network annual energy demand.