Distribution network investment strategies in the new business environment

Abstract

In this paper, electricity distribution investment strategies are analyzed in a new business environment. The world-wide problems related to aging networks, climatic challenges, public regulation and loss of expertise in distribution companies have to be solved to ensure profitability of the business in the future. On the other hand, there already are certain new technical solutions and innovations to answer some of these challenges. The question is: what is the reasonable and profitable investment strategy to develop distribution networks in the long run? This paper assesses, what kind of investments have potential to meet all the requirements. The results are based on actual investment cases done in the Nordic operating environment.