The Finnish electricity distribution sector, rural areas in particular, is facing majorchallenges because of the economic regulation, tightening supply security requirementsand the ageing network asset. Therefore, the target in the distribution network planningand asset management is to develop and renovate the networks to meet these challengesin compliance with the regulations in an economically feasible way. Concerning supplysecurity, the new Finnish Electricity Market Act limits the maximum duration ofelectricity supply interruptions to six hours in urban areas and 36 hours in rural areas.This has a significant impact on distribution network planning, especially in rural areaswhere the distribution networks typically require extensive modifications andrenovations to meet the supply security requirements.This doctoral thesis introduces a methodology to analyse electricity distribution systemdevelopment. The methodology is based on and combines elements of reliabilityanalysis, asset management and economic regulation. The analysis results can beapplied, for instance, to evaluate the development of distribution reliability and toconsider actions to meet the tightening regulatory requirements. Thus, the methodologyproduces information for strategic decision-making so that DSOs can respond tochallenges arising in the electricity distribution sector. The key contributions of thethesis are a network renovation concept for rural areas, an analysis to assess supplysecurity, and an evaluation of the effects of economic regulation on the strategicnetwork planning. In addition, the thesis demonstrates how the reliability aspect affectsthe placement of automation devices and how the reserve power can be arranged in arural area network.
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