DG planning incorporating demand flexibility to promote renewable integration

The integration of demand flexibility in distributed generation (DG) planning either lacks accuracy or ignores the potential of the behaviour of consumers in promoting the integration of renewables. This study proposes a DG planning model coordinating demand flexibility, in which the DG expansion plan and the behaviour of consumers in demand response (DR) programmes are co-optimised for the highest social welfare and the optimal utilisation of renewable generation. Consequently, the supply cost is reduced by utilising higher renewable generation instead of buying electricity from the grid. A share of the cost savings is allocated to the consumers to encourage their participation in DR programmes. Simulation results show that the expansion capacity of renewable generation is increased by 7.4% compared with no demand flexibility incorporation, and the social welfare is increased by up to 13.5% compared with no DG installation and 3.1% compared with no demand flexibility incorporation. Besides, the DR programmes carried out in the distribution system interact with the DG expansion plan, and higher subsidy rates in DR programmes could further promote the integration of renewables.