The worth of network upgrade deferral in distribution systems – Truism or myth?

• Impact assessment of smart grid assets (DSM, EV and others) in MV networks.
• Combining the control of these assets with the investments on network upgrade.
• Main conclusion: investments deferral can lead to higher costs in the long-term.

A considerable number of classic and modern control applications in distribution systems are developed aiming at make the most of the existing infrastructure. Under this perspective, investments postponement in grid upgrade appears as a good expectable result. The advent of smart grids enhances this expectation since it promises ubiquitous system monitoring, secure and trustworthy communication technologies and advanced control schemes. These features will allow the implementation of innovative algorithms for better operation and management of system assets. New possibilities arise for DSM, microgeneration control, electric vehicle charging and intelligent operation of energy storage devices. The scientific literature has countless examples that illustrate the benefits of such tools. A frequent outcome of these studies highlights the advantage of investments deferral in network reinforcement.This paper analyzes the combined effects of these control actions with the investments required for network upgrade, namely in lines and transformers reinforcement. Contrary to other research papers, our results demonstrate that investments deferral could lead frequently to higher costs in a long-term perspective.