Energy storage represents one of the key enabling technologies to facilitate an efficient system integration of intermittent renewable generation and electrified transport and heating demand. This paper presents a novel whole-systems approach to valuing the contribution of grid-scale electricity storage. This approach simultaneously optimises investment into new generation, network and storage capacity, while minimising system operation cost, and also considering reserve and security requirements. Case studies on the system of Great Britain (GB) with high share of renewable generation demonstrate that energy storage can simultaneously bring benefits to several sectors, including generation, transmission and distribution, while supporting real-time system balancing. The analysis distinguishes between bulk and distributed storage applications, while also considering the competition against other technologies, such as flexible generation, interconnection and demand-side response.

Realizing the significant demand flexibility potential in deregulated power systems requires its suitable integration in electricity markets. Part I of this work has presented the theoretical, algorithmic and implementation aspects of a novel pool market mechanism achieving this goal by combining the advantages of centralized mechanisms and dynamic pricing schemes, based on Lagrangian relaxation (LR) principles. Part II demonstrates the applicability of the mechanism, considering two reschedulable demand technologies with significant potential, namely electric vehicles with flexible charging capability and electric heat pump systems accompanied by heat storage for space heating. The price response sub-problems of these technologies are formulated, including detailed models of their operational properties. Suitable case studies on a model of the U.K. system are examined in order to validate the properties of the proposed mechanism and illustrate and analyze the benefits associated with the market participation of the considered technologies.

Electrification of transport fleets and heating sectors is seen as one of the key strategies to further reduce the use of fossil fuels and the resulting greenhouse gas emissions. However, it will potentially cause a significant increase of electricity peak demand and have adverse consequences on the electricity system, in particular on distribution networks. This paper will address the benefits of various applications of smart network control and demand response technologies for enhancing the integration of these future load categories, and for improvements in operation management and efficient use of distribution network assets. A range of numerical simulations have been carried out on different distribution network topologies (rural and urban networks) to identify the need and the cost of network reinforcement required to accommodate future load under various operating strategies such as Business as Usual (passive demand and passive network) against the smart grid approach. Applications of smart Plug-in vehicle (PiV) charging, smart heat pumps, and optimised control of network voltage regulators to reduce network investment have been studied, and selected key results of our studies on evaluating the benefits of implementing these technologies for Great Britain's distribution networks are presented and discussed in this paper

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EVs/HPs could significantly enhance both the carbon benefit and the RES integration 29 benefit of smart EVs/HPs. 30 31 Introduction 32Rapid expansion of Renewable Energy Sources (RES) is expected to make a key 33 contribution to electricity system decarbonisation. However, high penetration of 34 2 intermittent RES will increase the requirements for various reserve and frequency 35 response services, leading to reduced carbon benefit and increased balancing cost. 36Moreover, large amount of additional generation capacity is required to provide "RES 37 firming" for system security reasons, which causes additional costs associated with 38 RES integration. 39At the same time, the electrification of transport through electric vehicles (EVs) and 40 heating systems through heat pumps (HPs) is seen as another key policy measure to 41 further reduce the use of fossil fuel in energy supply and hence reduce carbon carbon emissions and RES integration cost within the UK electricity system. Therefore, 58 the key specific objectives of this paper can be summarized as: 591. Analyse the benefits of smart EVs/HPs trialled in LCL in reducing carbon emissions 60 in a broader UK electricity system. 61 2. Quantify the economic benefits of carbon savings from smart EVs/HPs in terms of 62 lower requirements to invest in zero-carbon generation capacity in order to achieve 63 the same carbon emission target. 64 3. Analyse the benefits of smart EVs/HPs in reducing system integration cost of RES, 65 including balancing cost associated with RES intermittency and investment cost 66 associated with back-up capacity to ensure system security. 67The impact of smart EVs/HPs is investigated for three future system development 68 scenarios, with particular emphasis on different possible evolution trajectories of RES 69