Utilizing flexible loads and battery storage systems in a pool of households with virtual metering

Novel business concepts utilizing load-flexibility offered by battery storage systems, electric heating and vehicles are emerging. This paper investigates the economic potential of such concepts when applied to households and highlights the view from a German DSO on integrating battery storage into Smart Grids. In this context, a new concept called “virtual metering” is presented, which uses an optimization model to simulate home energy management. Therefore, it allows for an enhanced field of application for flexibility options, e.g. taking part at electricity spot markets or providing control reserve. To evaluate the economic benefit of the aforementioned business concepts, we introduce a mixed-integer linear optimization model and simulate ideal operation of household battery storage systems and flexible loads. Hence, we show how the different stakeholders with diverse objectives profit from virtual metering while supporting grid operations as discussed by the EDSO in the future role of DSOs.