Techno‐Economic Multi‐Criteria Decision‐Making Framework for PV Hosting Capacity in Distribution Network Considering Demand Response Programs

ABSTRACT This article presents an optimization‐based multi‐criteria decision‐making framework in order to determine the optimal amount of photovoltaic (PV) hosting capacity in the distribution network, taking into account technical and economic aspects. As an effective tool for facilitating PV integration, the demand response (DR) is also integrated into the model using the price‐elasticity concept. In this way, a comprehensive set of DR programs, including price‐based, incentive‐based and combinational programs, are modelled. In order to provide a guideline for distribution network operator to implement the most effective DR program, different programs are prioritized considering the defined economic and technical features using the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method. The proposed model is tested on a 14‐bus IEEE test system, and the simulation results show that critical peak pricing programs increase the ability of the distribution network to integrate PV resources more than 18.4 kW compared to the general case study. Moreover, it reduces the daily energy losses by 227.7 kWh.