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Development of renewable energy resources led to significant increase of distributed generation (DG) penetration, especially in low voltage networks. Uncontrolled DG operation results with reduction of network reliability and numerous violation of technical standards. Energy storage is a tool, which due to accumulation ability and power electronic equipment can neutralize negative impact of DG. Nevertheless operation of energy storage and DG as well should be carried out preserving common market and legal rules of power industry. The paper deals with usage of energy storage for local energy balancing and ancillary services, traded on decentralized technical markets.