A coordinated source-network expansion planning framework for incremental distribution grid based on non-cooperative game theory

With the liberalization of the electricity market, various electricity sellers, including distributed generation owners (DGOs), have experienced rapid growth. In this evolving competitive landscape, traditional profit-maximization-based distribution network planning methods are no longer applicable to distribution system companies (DISCOs). To address this challenge, this paper proposes an expansion planning model for incremental distribution networks, which comprehensively considers the interests of both DISCOs and DGOs within the framework of non-cooperative game theory under complete information. The non-cooperative game dynamics between DISCOs and DGOs are analyzed, highlighting their competitive interactions in the electricity sales market. Additionally, an income function for DISCOs is formulated, incorporating electricity sales revenue, line upgrade costs, network loss costs, and power purchase expenses. The distribution network expansion planning model is designed to maximize the operating income of DGOs, ensuring a balanced approach to network development. To solve the proposed model efficiently, the particle swarm optimization (PSO) algorithm is employed. Simulation results on the IEEE 33-bus system demonstrate that the proposed model facilitates a mutually beneficial strategy, enabling both DISCOs and DGOs to achieve a win-win outcome in an increasingly competitive market environment.