This paper presents a comprehensive framework for the assessment of reliability and risk implications of post-fault Demand Response (DR) to provide capacity release in smart distribution networks. A direct load control (DLC) scheme is presented to efficiently disconnect DR customers with differentiated reliability levels. The cost of interrupted load is used as a proxy for the value of the differentiated reliability contract for different customers to prioritize the disconnections. The framework tackles current distribution system operator (DSO)’s corrective actions such as network reconfiguration, emergency ratings and load shedding, also considering the physical payback effects from the DR customers’ reconnection. Sequential Monte Carlo simulation (SMCS) is used to quantify the risk borne by the DSO if contracting fewer DR customers than required by deterministic security standards. Numerical results demonstrate the benefits of the proposed DR scheme, when compared to the current DLC scheme applied from the local DSO. In addition, as a key point to boost the commercial implementation of such DR schemes, the results show how the required DR volume could be much lower than initially estimated when properly accounting for the actual risk of interruptions and for the possibility of deploying the asset emergency ratings. The findings of this work support the rationale of moving from the current prescriptive deterministic security standards to a probabilistic reliability assessment and planning approach applied to smart distribution networks, which also involves distributed energy resources such as post-contingency DR for network support.
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