This model illustrates the incentive mechanisms established by the Australian regulator and their impact on the investment decisions of Distribution System Operators (DSOs). It captures how these regulatory incentives influence DSOs’ choices between investing in traditional grid infrastructure or embracing digitalization technologies. The model integrates various factors, including network requirements, regulatory incentives, and investment strategies, to provide a comprehensive view of how DSOs balance the trade-offs between conventional upgrades and innovative digital solutions. By simulating these dynamics, the model helps to understand how regulatory frameworks can shape investment decisions and drive the evolution of the energy grid.
