Value of Storage in Distribution Grids—Competition or Cooperation of Stakeholders?

Abstract

The implementation of storage capacities in distribution grids is seen as an important element for the integration of fluctuating feed-in caused by photovoltaic and wind generators. However, the responsibility for the operating of these assets is not defined in most market designs. Since decreasing costs are to be expected with further market penetration, next to distribution grid operators (DSO) further storage stake holders may be interested in controlling local storage devices. In this paper optimal storage profiles for different stakeholders (DSO and energy traders) are derived based on a case study with real world data. The results reveal conflicting interests-peak shaving of fluctuating feed-in (objective o the DSO to avoid reinforcements) is hampered significantly by storage usage of trading companies (objective of exploiting price spreads in the spot market). It is shown that unreasonable high costs occur with undesired economical side-effects if no control or cooperation mechanism is implemented.

A cyber-physical systems perspective on decentralized energy management

“…Discussions are ongoing on whether or not a DSO may use storage systems as an alternative since this enables the DSO to act on energy markets, which is not allowed since the unbundling. Nykamp shows that a storage asset shared by a DSO and a second party, acting on the energy markets, is economically viable [117]. The integration of a battery is tested in Germany to relieve stress from a rural grid under strict conditions to prevent the DSO from influencing the markets [118].…”

“…The aforementioned pricing schemes are mainly driven by the generation costs of electricity, however. Nykamp et al [117] show that the global energy market prices do not necessarily reflect the state of the local grid. As a result, merely using day-ahead or intraday market prices to manage electricity demand may amplify negative impact on the local grid usage, for example when market electricity prices are low due to global overproduction, but local production by RES is low, resulting in an increased local demand that is not matched with local production.…”

Optimal Planning of Distributed Energy Storage Systems in Active Distribution Networks Embedding Grid Reconfiguration

“…Energy Storage Systems (ESSs) owned by Distribution Network operators (DNOs) will have an important role in the Active Distribution Networks (ADNs), since they have the capability to provide both technical services and economic benefits (by providing both active and reactive powers) [1]- [4]. The ESSs optimal siting and sizing including the possible network reconfiguration is the first challenge to be addressed, which is the focus of this paper.…”

Experimenting with Law and Governance for Decentralized Electricity Systems: Adjusting Regulation to Reality?

“…Secondly, related to this, storage could be a new commercial activity in the electricity sector, which leads to the emergence of operators of storage facilities. As [50] points out conflicting interests in regard to storage, regulating this activity is essential.…”