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The title of the thesis: A Techno-Economic Analysis of Photovoltaic Hosting Capacity of Distribution Networks

Thesis defender: Samar Fatima
Opponent: Prof. George Cristian Lazaroiu, National University of Science and Technology POLITEHNICA Bucharest, Romania
Custos: Prof. Mahdi Pourakbari Kasmaei, Aalto University School of Electrical Engineering

The accelerating climate change and growing emissions are the main drivers of global decarbonization efforts. Consequently, European solar and wind capacities reached 338 GW and 285 GW, respectively, in 2024. This rapid rise in photovoltaic (PV) integration causes network stability concerns, pushing networks toward their hosting capacity (HC) limits. Traditionally, these HC limits have been defined by the technical safety margins. However, the financial burden of increased energy losses can become an equally important limiting factor from the perspective of distribution system operators (DSOs). In this context, the rapid adoption of PV systems by customers for their own economic and energy management goals presents a challenge for DSOs responsible for maintaining both network stability and financial viability.  

This research addresses this challenge by introducing the concept of economical photovoltaic hosting capacity, which accounts for the financial impact of energy losses alongside technical limits. In addition, the study identifies a breakeven point to evaluate the trade-off between physical network upgrades and solar curtailment for hosting capacity improvement. The research moves beyond passive network analysis to a multi-perspective evaluation, considering the objectives of different network entities such as renewable energy aggregators, prosumers, and DSOs. It investigates the interaction between different stakeholders to influence grid capacity and energy management.  In doing so, the research utilizes Stackelberg game theory to synchronize the flexibility of active consumers with intermittent wind and solar power.

The research results reveal that economic factors often define the true limit of a network, potentially restricting solar integration even before traditional technical margins are reached. As renewable integration continues to rise, the growing financial burden of photovoltaic curtailment eventually makes network upgrades the economically viable long-term solution. Furthermore, the findings show that coordinating prosumer flexibility significantly expands a network's hosting capacity without requiring immediate reinforcements. The implemented game-theory models successfully balance the financial objectives of customers with grid stability requirements of DSOs, providing a practical solution for a technically and economically sustainable energy transition.

Key words: battery storage, cost optimization, demand response, energy management, electric vehicles, flexibility, hosting capacity

Thesis available for public display 7 days prior to the defence at .