A novel planning process approach – widening flexibility range

Distribution System Operators (DSOs) are being challenged to demonstrate the need to construct new network infrastructures compared to other viable alternatives, namely the use of market-based contracting of flexibility of distributed resources. A recent experience by E-REDES with a set of flexibility use cases showed that no economic efficiency was recognized in flexibility alternatives as a mechanism for investment deferral. Instead, regarding this limitation and considering the finite investment resources that DSOs have, it is proposed to establish flexibility alternatives to guarantee power supply within regulatory and safety standards, even if the grid rated capacity does not suffice. This paper introduces a new approach to the planning process within the scope of investments justified by load growth. It is proposed that flexibility contracts, along with power flow probabilistic methodology, be taken advantage of as a risk management tool to ensure the satisfaction of consumption loads under normal operating conditions. A use case is presented where flexibility requirements are proposed to avoid expected constraints, at least until the project's conclusion.