Strategic Planning of Non-Wires Alternatives in Distribution Networks Using a Cooperative Game-Theoretic Approach

Abstract

The increasing penetration of distributed energy resources (DERs) as non-wires alternatives (NWAs) is transforming distribution network planning. However, existing approaches are typically based on centralized frameworks and do not account for multiple independent investors. This work proposes a methodology based on cooperative game theory for the planning of private DERs that contribute to deferring conventional network investments. Projects are modeled as players forming coalitions, which are evaluated through a combined technical and economic analysis. For each coalition, a mixed-integer nonlinear programming (MINLP) problem is solved to determine its optimal sizing, from which the minimum incentive required to ensure economic viability is computed. The results show that the proposed method identifies project combinations that resolve network issues while minimizing financial support. In the case study, the optimal solution requires only 50% of the available incentive budget, improving efficiency compared to a centralized approach.