A Risk-Averse Approach for Distribution Grid Expansion Planning

Recent episodes of natural disasters have challenged the resilience of power grids. Adequate distribution grid planning that properly captures the risk aversion of the utility system planner is a key factor to increase the flexibility of distribution networks to circumvent these events. In this paper, we propose a methodology to determine the optimal portfolio of investments in lines and storage devices in order to minimize a convex combination between expected value and CVaR of operational costs, including energy not served, while taking into account the multistage nature of the energy storage management within this context. While the expected value of energy not served has been traditionally employed to tackle routine failures, we also minimize the CVaR of energy not served to address high-impact, low-probability (HILP) events. We illustrate the performance of the proposed methodology with a 54-Bus system test case.