| Summary: | Abstract The rapid development of photovoltaics (PVs) and load caused a significant increase in peak loads and peak‐valley differences in rural distribution networks, which require load peak shifting and line upgrading. Large peak‐valley differences also bring challenges on the safe operation of the utility power grid. Considering the integration of a high proportion of PVs, this study establishes a bilevel comprehensive configuration model for energy storage allocation and line upgrading in distribution networks, which can reduce peak loads and peak‐valley differences. In the upper level, a minimum annual planning cost is obtained by developing the installation capacity of centralised energy storage in transformer stations, the installation location and capacity of decentralised energy storage on lines and a scheme of line upgrading. In the lower level, the minimum total annual operation cost of the distribution network is obtained by developing an optimal scheduling for the centralised energy storage in transformer stations and decentralised energy storage on lines. Simulation results show that compared with the conventional energy storage planning strategy, the configuration investment can be reduced by 467.66 million yuan at least with the proposed strategy.
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