Economic benefits of integrating Active Demand in distribution network planning: A Spanish case study

•Possible ways to incorporate AD into distribution network planning are explored.•The potential economic savings from AD in network reinforcements are quantified.•AD could be a helpful regulatory tool to optimize DSO's economic performance.•The economic impact of AD in distribution grids depends greatly on local conditions.•Only a very high level of consumer involvement could bring significant benefits.

The recent advances in smart metering and communication technologies in electricity distribution networks could bring new opportunities to distribution system operators (DSOs). In particular, new forms of Active Demand (AD) could be developed to help DSOs to alleviate network congestions and decrease peak capacity requirements, which could in turn reduce or postpone the need for network reinforcements. This paper explores the mechanisms that would allow DSOs to incorporate AD procedures into their network planning strategies. A Reference Network Model (RNM) is used to quantify the potential economic benefits that AD could bring to distribution grids. The analysis is supported by a case study of two rural and urban areas of Spain, based on realistic large-scale exemplary networks and real consumption data.