An Optimization Framework for Time-Block Bound-based Non-Firm Capacity Contracts for Congestion Management

Due to congestion in power distribution networks, customer waiting lists are growing because of limited transport capacity. To address this issue in the short term, a new regulation has recently been introduced in the Netherlands, recognising that long-term solutions require substantial execution time. This paper proposes a scheme to mitigate congestion in response to this new regulation. The proposed approach involves solving two optimisation problems. First, time-block-bound-based non-firm capacity contracts (TBBB-NFCC) are determined for existing customers based on their historical consumption profiles. Second, new customers are connected to the grid, prioritising their positions on the waiting lists. The allocation process considers each customer’s requested demand and priority. The scheme distinguishes between congested and non-congested regions. In congested areas, TBBB-NFCCs are applied, while firm capacity contracts are allocated in regions with sufficient capacity. Both optimisation problems are formulated as second-order cone programming problems. To validate the proposed approach, the IEEE 33-node test feeder is used to evaluate various test cases. Results demonstrate that new customers can be successfully connected to the grid without exceeding thermal limits, even with additional demand.