1. Proactive Network Planning in Medium Voltage Level
Introduction
Analysis
Methods
Exemplary Examinations
Conclusion
M.Sc. Marius Sieberichs
40th Annual IAEE International Conference
Singapore, 20. June 2017

2. Background – Tasks of Network Planning
Introduction
Background – Tasks of Network Planning
Current Network
Projects
Reference Network
Development of Network Utilization
Time
10 years 1 2
Reference Network Planning
Identification of network structure with long-term minimal costs
Compliance with regulations for secure and reliable network operation
Network Expansion Planning
Determination of planning measures and selection of economical realization times
Compliance with regulations for secure and reliable network operation

3. Introduction
Motivation
Development of the Supply Task
Increase in distributed and renewable generation units in medium voltage level
Integration of novel consumers such as electromobility and heat pumps
Development of the supply task requires network expansion measures by distribution system operator
Impact of the Regulatory Framework
Regulatory Framework aims to guarantee secure and cost-efficient electricity supply
Incentive Regulation decouples cost-minimization strategy from value-oriented strategy
Distribution System Operators (DSO) have to adapt network expansion planning to the impacts of the regulatory framework
Improvement of Data Quality in Planning Process
Increasing need for precision of network data in the planning process
Availability of dedicated data platforms providing precise, processible topographical data
DSOs should integrate topographical boundaries into the planning process
Extension of an approach for proactive network planning with regard to topographical restrictions and impacts of the regulatory framework

4. Cyclical Cost Review and Efficiency Factor
Analysis
Regulatory Framework
Cyclical Cost Review defines the initial level of the revenue cap for following regulatory period
Efficiency Factor determines the level of reduction of the revenue cap by comparisons of DSOs
Cyclical Cost Review and Efficiency Factor
Payments
Time
2019
2023
Base
Inefficient Costs
Costs1
Efficient Costs
Focus Year 2016
Free Cash Flow to investors (positive)
Free Cash Flow to investors (negative)
Expenditures
Revenue Cap
1: Legislation for Networks Fees of
Electricity Networks (StromNEV)

5. Cyclical Cost Review and Efficiency Factor
Analysis
Regulatory Framework
Cyclical Cost Review defines the initial level of the revenue cap for following regulatory period
Efficiency Factor determines the level of reduction of the revenue cap by comparisons of DSOs
Quality Element interperiodically grants a bonus / a sanction on the revenue cap depending on the reliability
Expansion Factor interperiodically adjusts the revenues depending on the change of the supply task
Cyclical Cost Review and Efficiency Factor
Quality Element and Expansion Factor
Payments
Time
2019
2023
Base
Inefficient Costs
Costs1
Efficient Costs
Focus Year 2016
Free Cash Flow to investors (positive)
Free Cash Flow to investors (negative)
Expenditures
Revenue Cap
1: Legislation for Networks Fees of
Electricity Networks (StromNEV)

6. Economical Evaluation of Planning Projects
Analysis
Economical Evaluation of Planning Projects
Cost-Optimization
Calculation of costs associated with all M planning measures
Determination of Net Present Value (NPV) over all years N
Minimization of total NPV over observation period
DFCF-Optimization
Company and project evaluation by Discounted-Free-Cash-Flow-method (DFCF)
Method evaluates future free cashflow for payout to investors
Determination of DFCF for expected return on equity (ROE)
Maximization of total DFCF for given ROE
Previous Approaches
𝑁𝑃𝑉= 𝑏=1 𝑀 𝑡=1 𝑁 𝐶 𝑡 (1+𝑖) 𝑡
Revenue
Operating payments
Payments for Taxes and Borrowed Capital
Payments for Investments
Free-Cash-Flow (FCF) to equity provider
Cashflow Calculation in Year 1
When we look to previos approaches then we will see taht all´planing toools assume, that we have a pefect regulations framewokr thwt means -.. Is sufficienz
But in pratice., ther are some imperfections and thats the reason that we need to modell ther egualteion framwork… Therefore we have integratet a discounte.. Method in the cuirrent planiung tool. This methods take..
𝐷𝐹𝐶𝐹= 𝑏=1 𝑀 𝑡=1 𝑁 FCF (1+ROE) 𝑡

7. Cost Drivers of a Medium Voltage Network and Topographical Data
Analysis
Cost Drivers of a Medium Voltage Network and Topographical Data
Cost Drivers
Costs for underground cables are the main cost driver in cable networks
Trench construction holds high share of underground cable costs
Multiple utilization of one trench for multiple cables has a significant potential for cost reduction (Especially consideration of empty tubes)
Evaluation of topography is beneficial for the planning process to optimize multiple utilization of trenches
Topographical Data for Line Routings
Digital data for topographical structures available on public data platforms (example: Open Street Map)
Capturing of real topographical data such as streets, rivers, buildings, railroad lines etc.
Filtering and preparation of the data enables automatized processing in the planning process
Consideration of topographical data in the planning process to design reliable, secure and cost-efficient target network
Costs
Exemplary investment costs for trench and cable %
trench
cable
Possible line routing
Building
Railroad line
And this two influencing facotrs have been integratet into an exsiting methodolgy.

8. Two-step Approach for Proactive Network Planning
Method 6
Two-step Approach for Proactive Network Planning
Combined reference network and network expansion planning
Determination of long-term cost-minimal network structures in reference network planning
Utilization of results of Reference Network Planning in Network expansion Planning as input parameters
Determination of optimal realization times of expansion measures to approach long-term cost-minimal structure
Network /
Supply tasks
Degrees of freedom in regulation and planning
Reference Network Planning
Determination of street graph
Development of reference network
Technical / Economical Evaluation
Network Expansion Planning
Identification of expansion measures
Development of expansion plan
Technical / Economical Evaluation
Shwo u.
Optimal expansion measures and realization plan

9. Two-step Approach for Proactive Network Planning
Method 6
Two-step Approach for Proactive Network Planning
Combined reference network and network expansion planning
Determination of long-term cost-minimal network structures in reference network planning
Utilization of results of Reference Network Planning in Network expansion Planning as input parameters
Determination of optimal realization times of expansion measures to approach long-term cost-minimal structure
Network /
Supply tasks
Degrees of freedom in regulation and planning
Determination of the initial street graph
Amalgamation of network and street data
Calculation of the shortest paths
Reference Network Planning
Determination of street graph
Development of reference network
Technical / Economical Evaluation
Optimal expansion measures and realization plan

10. Two-step Approach for Proactive Network Planning
Method 6
Two-step Approach for Proactive Network Planning
Combined reference network and network expansion planning
Determination of long-term cost-minimal network structures in reference network planning
Utilization of results of Reference Network Planning in Network expansion Planning as input parameters
Determination of optimal realization times of expansion measures to approach long-term cost-minimal structure
Network /
Supply tasks
Degrees of freedom in regulation and planning
Reference Network Planning
Determination of street graph
Development of reference network
Technical / Economical Evaluation
Network Expansion Planning
Identification of expansion measures
Development of expansion plan
Technical / Economical Evaluation
Optimal expansion measures and realization plan

11. Two-step Approach for Proactive Network Planning
Method 6
Two-step Approach for Proactive Network Planning
Combined reference network and network expansion planning
Determination of long-term cost-minimal network structures in reference network planning
Utilization of results of Reference Network Planning in Network expansion Planning as input parameters
Determination of optimal realization times of expansion measures to approach long-term cost-minimal structure
Network /
Supply tasks
Degrees of freedom in regulation and planning
Network Expansion Planning
Identification of expansion measures
Development of expansion plan
Technical / Economical Evaluation
FCF
Revenue
Expenditures
Optimal expansion measures and realization plan

12. Exemplary Examinations
Supply Task
Current Network: Rural distribution system on medium-voltage level
Total Load: ~ 50 MW
Total Feed-in: ~ 3 MW
Current supply task characterized by the load of the customers
Development of the supply task in the observation period of 10 years
13 % increase of loads and number of customers
175 % increase of feed-in peak power
Significant expansion of feed-in over the planning horizon
Current Network
Primary substation
Medium-Voltage line

13. Results of Reference Network Planning
Exemplary Examinations
Results of Reference Network Planning
Functional structure of reference network
Combined ring- and branch-structure
4 medium-voltage rings, 3 medium-voltage branches
Line routings of current grid and target grid
Line routings of new lines follow courses of roads
High correlation of line routings between the grids
 Multiple utilization of trenches possible (empty tubes)
Primary substation
target grid line
current grid line
Substations:
S < 300 kVA
300 kVA < S < 600 kVA
S > 600 kVA
Primary substation
target grid structure
Substations:
S < 300 kVA
300 kVA < S < 600 kVA
S > 600 kVA

14. Effects of the Regulatory Framework on the Realization Plan
Exemplary Examinations
Effects of the Regulatory Framework on the Realization Plan
Shift of the economically optimal realization times depending on the underlying economical evaluation
Concentration of expansion measures in specific years of Incentive Regulation Ordinance for DFCF-Optimization
Cost-optimization leads to lower return on expansion measures
Value-oriented DSOs should implement optimization towards regulatory framework to maximize economical outcome
Number of planning measures
T. €
DFCF
7 %
Cost-Optimization
DFCF-Optimization

15. § Conclusions Conlcusion and main results Aim of the Study
Advanced proactive network planning for consideration of supply task Development
Analysis
Topographical data provides potential for improved efficiency in reference network planning
Regulatory framework impacts the economical evaluation for planning projects
Method
Combined two step approach consisting of reference network planning and network expansion planning provides long-term cost reductions while maintaining short-term profitability of the network operator
Results
The integration of geographical data enables the design of a practically applicable reference networks
The optimization towards the underlying regulatory framework impacts Discounted-Free-Cash-Flow

16. DISCUSSION M. Sc. Marius Sieberichs Institute for Power Systems and Power Economics RWTH Aachen University - Germany Phone: +49 (0) co-authors B. Sc. Robin ashrafuzzaman Univ.-Prof. Dr.-Ing. Albert Moser