DER Hosting capacity for distribution networks: definitions, attributes, use-cases and challenges

Abstract: The rapid adoption of distributed energy resources (DERs) has outpaced grid modernization, leading to capacity limitations that challenge their further integration. Hosting Capacity Assessment (HCA) is a critical tool for evaluating how much DER capacity a grid can handle without breaching operational limits. HCA serves multiple goals: enabling higher DER penetration, accelerating grid connection times, guiding infrastructure upgrades or flexible resource deployment, ensuring equitable policies, and improving grid flexibility while minimizing curtailment. HCA lacks a universal definition, varying by modelling approaches, uncertainty considerations, and objectives. This paper addresses five key questions to standardize and enhance HCA practices. First, it classifies HCA objectives associated with different stakeholders such as system operators, consumers, market operators and consumers. Second, it examines model attributes, including modelling sophistication, data requirements, and uncertainty handling, thus balancing complexity with computational efficiency. Third, it explores HCA applications, such as planning grid investments or operational decisions, and summarizes use cases associated with HCA. Fourth, it emphasizes the need for periodic updates to reflect dynamic grid conditions, evolving technologies, and new DER installations. Finally, it identifies challenges, such as ensuring data quality, managing computational demands, and aligning short-term and long-term goals. By addressing these aspects, this paper provides a structured approach to perform and apply HCA, offering insights for engineers, planners, and policymakers to manage DER integration effectively.