A Two-Stage Optimization Method for Fund Allocation in Carbon Reduction Renovation of Multiple Distribution Areas

To contribute to the early achievement of the “dual carbon” goal, it is essential to implement carbon reduction transformations in existing distribution networks. Given the varying development levels of these networks, low-carbon planning has become a focal point of research. The challenge lies in planning distribution networks effectively under limited capital investment to maximize overall carbon reduction. However, from the perspective of electric power companies, there may be multiple distribution areas within their jurisdiction. Integrating these areas into a single planning problem can result in a dimensionality disaster, especially since these areas are not necessarily physically interconnected.To address the carbon reduction and transformation challenges across multiple distribution areas, this paper proposes a two-stage carbon reduction and transformation method. In the first stage, a lowcarbon planning model based on carbon emission flow theory is developed, followed by an evaluation of the carbon reduction potential for each distribution area. In the second stage, carbon reduction intensity curves are derived for each area, and an equal carbon reduction intensity method is introduced for optimal allocation of retrofit funds across multiple distribution areas. Theoretical proofs supporting this method are also provided. Finally, three distribution regions with different development levels are modeled, and the proposed method is validated through numerical examples, demonstrating its correctness.