New Investment Strategies in the Modern Electricity Distribution Business - Reliability in the Long-Term Planning

Abstract

The reliability requirements and the role of the supervisory authority in the electricity distribution business have grown strongly in the past few years. Electricity distribution companies are forced to consider new investment strategies to meet the challenges arising from the new operational environment. Aged electricity networks are subject to the more challenging weather conditions. To meet the new requirements, the traditional line extension approach is no longer an acceptable and sustainable planning method. There are various new technical solutions and methods to develop electricity networks. In this paper, different kinds of electricity distribution investment strategies in the modern business environment are studied. Strategies are based on several new technical innovations successfully implemented in Finnish electricity distribution companies. Methods such as roadside networks, 1000 V low voltage system, underground cables and low-cost primary substations are exploited successfully in the long-term planning process.