Resilience-oriented Planning and Cost Allocation of Energy Storage Integrated with Soft Open Point Based on Resilience Insurance

TL;DR

This paper presents a novel cost allocation and planning framework for energy storage with soft open points in distribution networks, incorporating resilience insurance and robust optimization to enhance resilience against extreme events.

Contribution

It introduces a resilience insurance-based cost allocation mechanism and a stochastic distributionally robust optimization model for E-SOP planning and insurance pricing.

Findings

Effective resilience improvement demonstrated on IEEE 33-bus system.

Cost allocation based on resilience insurance enhances economic viability.

Robust optimization effectively manages uncertainties in extreme events.

Abstract

In recent years, frequent extreme events have put forward higher requirements for improving the resilience of distribution networks (DNs). Introducing energy storage integrated with soft open point (E-SOP) is one of the effective ways to improve resilience. However, the widespread application of E-SOP is limited by its high investment cost. Based on this, we propose a cost allocation framework and optimal planning method of E-SOP in resilient DN. Firstly, a cost allocation mechanism for E-SOP based on resilience insurance service is designed; the probability of power users purchasing resilience insurance service is determined based on the expected utility theory. Then, a four-layer stochastic distributionally robust optimization (SDRO) model is developed for E-SOP planning and insurance pricing strategy, where the uncertainty in the intensity of contingent extreme events is addressed by a stochastic optimization approach, while the uncertainty in the occurrence of outages and resilience insurance purchases resulting from a specific extreme event is addressed via a distributionally robust optimization approach. Finally, the effectiveness of the proposed model is verified on the modified IEEE 33-bus DN.