Redefining grid investment planning: leveraging flexibility for cost-effective integrated distribution networks

The increasing adoption of distributed energy resources (DER) and the electrification of energy demand are causing grid congestion in several European countries, including the Netherlands. While short-term flexibility measures like batteries and demand-side response are currently used to alleviate grid constraints, integrating flexibility into long-term grid investment planning can reduce the need for extensive grid expansion. This paper presents a framework for incorporating flexibility into Distribution System Operator (DSO) grid investment planning and evaluates its financial, technical and spatial impacts in two case regions. The first region faces high future electricity demand, while the second experiences significant DER growth. By comparing traditional and flexibility-integrated investment planning approaches, this study demonstrates that integrating flexibility assets such as power-to-gas (P2G), gas-to-power (G2P), and curtailment can lead to more cost-effective grid designs. The findings highlight the potential for cost savings and reduced spatial impact, emphasizing the need to make flexibility an integral part of grid investment planning.