Assessing the impact of incentive regulation on distribution network investment considering distributed generation integration

In a deregulated power system, incentive regulations for network owners are designed to direct the network investment. An innovative method that assesses the incentive regulation in distribution networks is proposed in this paper. The method quantifies the interplay between incentive regulation, network investment, and network performances. It allows regulators and the distribution system operators (DSOs) evaluating the economic effects of investments within the incentive regulation framework. Considered network investments include the investment in network infrastructure and performance improving. The assessment is based on a network investment optimization model considering multi-period optimal power flow and regulatory constraints. The main contributions of this paper include the modeling of the incentive regulations and the quantification of the impacts of incentive regulation on network infrastructure investment and performance improving investment.