In our blog series on the data-driven power grid, we have previously discussed how grid companies are evolving from the role of a traditional Distribution Network Operator (DNO) to a Distribution System Operator (DSO). As the electricity system changes, planning the grid’s capacity becomes more complex and more central to operations.
Historically, grid expansion could take place at a relatively steady pace and with long lead times. Today, both production and consumption are changing rapidly, often locally and sometimes unpredictably. To meet this reality, it is no longer sufficient to work solely with long-term network development planning – nor to focus only on day-to-day operations.
Both perspectives are required. And above all, an understanding of how capacity plans are used in practice.
A changing power system
The increased demands on capacity planning stem from rapid developments in the energy system.
Historically, the power grid was based on:
- centralized production from hydro and nuclear power
- relatively stable and predictable demand
- slow changes in grid structure
Today, the reality looks different:
- local generation from solar, wind, and batteries is growing rapidly
- demand is increasing due to electrification of transport, heating, and industry
- grid companies are expected to provide faster and clearer responses regarding connections
This means that both premature and delayed investments can be costly. Planning the right capacity at the right time is therefore crucial.
Two perspectives on capacity
Capacity planning takes place across two different time horizons, with different purposes and types of value.
Short-term capacity planning focuses on how existing capacity is used here and now. It supports operational decisions and answers questions such as:
- Where is there available capacity in the grid today?
- Which customers can be connected in the near term?
- How do temporary production or consumption patterns affect operations?
- How do we handle temporary bottlenecks or seasonal variations?
This type of planning requires high data quality, up-to-date network status, and close collaboration between operations and connection processes.
Long-term capacity planning, on the other hand, is a strategic task with a multi-year perspective. It focuses on questions such as:
- Where will capacity shortages occur if no action is taken?
- How do local production and demand interact over time?
- What investments need to be planned and when?
- How do we create flexibility in a more dynamic power system?
The level of detail is lower, but the perspective is broader. It is not about which cables will suffice this summer, but which bottlenecks must be resolved within three to five years.
Where does NIS fit in?
With a Network Information System (NIS) like dpPower, you can create a digital twin of your network with built-in functionality for analyzing load, capacity, and bottlenecks. By combining network data, operational information, and structural data in a single model, it becomes possible to:
- analyze capacity utilization in different parts of the network
- simulate the effects of new connections
- identify future capacity constraints
- support both short-term and long-term planning
When capacity analyses are linked to a well-structured NIS, the organization gains a shared foundation that can be used across engineering, planning, and management.
Planning = decision support
Capacity planning is a tool for collaboration across multiple parts of the organization—from operations and customer connections to strategic planning and finance.
When used correctly, capacity plans can:
- provide better decision support for investments
- create clearer processes for connections
- reduce the risk of misallocated investments
- contribute to a more robust and flexible power grid
As with KPIs, dashboards, and data warehouses, the real value ultimately lies not in the tool itself but in how it is used in the organization’s decisions and ways of working.
In our article series The data-driven power grid, we take a closer look at five critical tools on the journey towards DSO:
- Data warehouse – Building the foundation with a Data Warehouse
- Dashboards – Visualizing information with a clear purpose
- KPIs – Managing by facts, not gut feeling
- Capacity planning – Planning for both operations and development
- Forecasts (upcoming) – Making decisions with the future in mind
We share practical advice, highlight common pitfalls and show how you can move forward – no matter where you are today.
Welcome to join the journey.
Meet the expert
Erling Gustafsson has a solid background in the electricity industry and has supported many companies on their digitalization journeys. He is also the author of the Swedish book “Innovation och utmaningar i ett nytt energisystem: En guide för en proaktiv elnätverksamhet” (Eng.: “Innovation and Challenges in a New Energy System: A Guide for Proactive Grid Operations.”)