Substation Planning Method Based on a Novel Combinational Optimization Method Considering Incentive-Based Demand Response

Demand response (DR) is a significant resource for peak shaving of substations. However, substation capacity is strongly coupled with DR, which remains to be investigated. In this paper, a novel substation planning method considering incentive-based demand response is proposed. A nested substation planning framework based on combinational optimization is established, and the interdependence between substation capacity, service area and DR is incorporated. A systematic iterative solution algorithm is proposed, in which service area of substations are determined by hierarchical weighted Voronoi diagram method. Numerical experiments are carried out on a real rural region. Compared with mathematical optimization method and traditional weighted Voronoi diagram method, the solution quality and efficiency of the proposed method are improved.