A bi‐level multistage distribution network expansion planning framework with the cooperation of residential private investors

In recent years, supporting schemes have been legislated by several governments to encourage private investors in installing renewable energy resources (RER). In such cases, the supportive policies are mainly enacted based on the either investor or distribution companies’ standpoint. In this paper, a distribution network expansion planning (DNEP) framework with the cooperation of residential private investors (RPI) is proposed. Due to the presence of a couple of main participants, the proposed framework is arranged in a bi-level framework, where the RPI participation is optimized at the upper level, and the system structure is determined at the lower level. In order to assess the profitability of the project from the investors’ attitude, payback period years (PBY) is utilized. Meanwhile, due to the presence of uncertainty resources, fuzzy clustering method (FCM) is developed to catch the intermittency of the problem. The proposed framework is implemented on a real 81 bus distribution test system in Iran. Moreover, the existing scheme in Iran and also a modified plan are investigated to make cost-effective decisions. Finally, sensitivity analysis is performed to reach a more beneficial result. Obtained results demonstrated how distribution companies can utilize the potential of residential customers in long-term planning.