Under the current EU legislation, Distribution Network
Operators (DNOs) are expected to provide firm connections to new
DG, whose penetration is set to increase worldwide creating the
need for significant investments to enhance network capacity.
However, the uncertainty around the magnitude, location and
timing of future DG capacity renders planners unable to accurately
determine in advance where network violations may occur. Hence,
conventional network reinforcements run the risk of asset
stranding, leading to increased integration costs. A novel stochastic
planning model is proposed that includes generalized formulations
for investment in conventional and smart grid assets such as
Demand-Side Response (DSR), Coordinated Voltage Control (CVC)
and Soft Open Point (SOP) allowing the quantification of their
option value. We also show that deterministic planning approaches
may underestimate or completely ignore smart technologies.