Abstract:Increasing demand on electrical energy coupled with lack of new distribution facilities create a potential threat that can eventually sprawl to jeopardize the distribution system reliability. The variability characteristics of wind energy sources present a fundamental problem to its smooth integration in the distribution feeders, in a large proportion. Energy storage (ES) systems and demand response (DR) technique have the potential to improve the flexibility of distribution network, by allowing two ways of freedom for the distribution network operator (DNO), to support mitigation of demand-supply balance issues, and thereby the share of renewable energy sources (RESs) or improve penetration levels of renewables. By shifting electricity supply and customer demand patterns, this paper applies real time pricing and energy storage not only to significantly increase the penetration of wind energy, but also to offer other important value to shifts demand to times of relatively high renewable energy resources and low load; and by storing energy during off-peak, with less line losses, and redispatching this energy when needed. The results show that real time pricing and energy storage can effectively provide demand-supply benefits to the distribution network and customers.