We do not know the impact of distribution network constraints on grid expansion planning and how uncertainty may influence the transmission and distribution level investment decisions. This paper presents a novel stochastic integrated grid planning approach considering distribution network constraints, combining a two-stage optimization grid expansion model with a distribution network hosting capacity (HC) assessment for a stylized representation of the Malaysian grid. Our result shows that omitting distribution constraints and ignoring uncertainty in grid investment planning has a significant impact on the optimal solution and quantifiable economic consequences. We also evaluate the benefit of integrating solar PV and battery storage, which, as we show can lead to potential savings of 0.86% ($2.37billion) of the expected cost.
Keywords stochastic, integrated grid planning, solar PV, battery storage, Malaysia, renewable