The potential of redox flow batteries to provide power balancing services within a microgrid was studied. Modelling of a benchmark microgrid was performed, to determine the technical and commercial suitability of redox flow batteries to be used for balancing energy generation and demand throughout a single day. It was found that the battery would fit in a service room of a residential block and would be suitable for balancing the whole microgrid. Based on the calculated usage patterns and the technology's characteristics, it was determined that redox flow batteries are suitable for energy storage in urban microgrids.