Abstract
Achieving carbon neutral power systems is pushing for higher penetration of distributed energy resources (DER) in existing distribution systems. Accordingly, sophisticated, yet, practical tools for the optimal operation and management of active distribution systems (ADS) are in high need. In response to this necessity, this paper presents a novel and scalable tool for ancillary services procurement by distribution system operators (DSOs). The developed tool takes into consideration the inter-temporal and variable nature of DER in an uncertainty-aware approach. This tool is also suited for real-world implementation with large ADS, as it adopts a sequential linearization approach. As such, it allows DSOs to procure flexibility optimally from DERs embedded in ADS in the day-ahead operation planning timeframe, where congestion and voltage issues are managed.

Abstract
This paper proposes a planning optimization model to help distribution system operators (DSOs) decide on the most cost-effective investments to handle the wholesale market participation of distributed energy resources (DERs). Two investment options are contemplated: market redesign; and network augmentation. The market redesign is employed through a DSO framework used to coordinate the network-secure participation of DERs in wholesale markets. Network augmentation is achieved by investing in new HV/MV OLTC and MV/LV transformers. To evaluate the performance of our planning model, we used the IEEE 69-bus network with three DER aggregators operating under different DER scenarios. Our tests show that the planning problem suggests investment decisions that can help DSOs guarantee network security. Market redesign has shown to be the most cost-effective option. However, this option is not always viable, namely in scenarios where not enough DERs are available to provide network support services. In such scenarios, hybrid investment solutions are required.