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In the field of sector integration, the expansion of district heating (DH) is traditionally discussed with regard to the efficient integration of renewable energy sources (RES) and excess heat. But does DH exclusively benefit from other sectors or does it offer advantages in return? So far, studies have investigated DH only as a closed system or determined intersectoral benefits in a highly aggregated approach. We use and expand an integrated generation and transmission expansion planning model to analyze how the flexibility of DH benefits the energy system and the power transmission grid in particular. First of all, the results confirm former investigations that show DH can be used for efficient RES integration. Total annual system cost can be decreased by expanding DH, due to low investment cost and added flexibility, especially from large-scale heat storage. The high short-term efficiency of heat storage—in combination with electric heating technologies—can be exploited to shift heat demand temporally and, using multiple distributed units, locally to solve electric grid congestion. Although it is unclear whether these results can be replicated in the real world, due to the aggregation and detail of the model, further research in this direction is justified. [ABSTRACT FROM AUTHOR]

• Integrated optimization of multi-stage expansion planning and grid operation. • Selection of expansion candidates via linear programming relaxations. • Optimizing the grid operation reduces the need for network expansion. • Need for new lines is substituted by the placement of phase shifting transformers. • Minimization of expansion costs by dynamic multi-stage expansion planning. The ongoing transformation of the power system characterized by an increased share of renewable energy sources requires additional transmission capacities. Nevertheless, the need for new transmission capacities can be reduced by optimizing grid operation. This contribution presents a novel approach to the co-optimization of multi-stage transmission expansion planning and grid operation within a mixed-integer linear programming formulation. The expansion via AC systems and phase shifting transformers (PSTs) is combined with the control of PSTs and the determination of congestion management interventions such as redispatch of power plants or curtailment of renewable energies. The number of potential expansion candidates is reduced by linear programming relaxations. Exemplary results based on a synthetic test system containing 120 buses evidence the impact of the proposed approach on overall system costs. The proposed co-optimization reduces the total costs by 16.5 % when applied instead of the sole expansion via AC technology. [ABSTRACT FROM AUTHOR]