Assessing the Value of Energy Storage Systems for Distribution Grid Applications

In this paper the potential benefits t hat energy storage systems (ESS) can bring to distribution networks are analyzed. We propose an optimization model for the strategic allocation of ESS within a distribution system with photovoltaic (PV) generation, with the main focus on maximizing value benefits. A D istFlow formulation i s used for modeling t he AC power flow. The ESS model is based on a generic formulation that captures the charging and discharging modes' complementarity. The resulting optimization model is stated as a mixed-integer quadratically constrained program (MIQCP) problem. We evaluate the model on a modified 33-bus IEEE network considering renewable uncertainties. The obtained results show that ESS can offer various important benefits such a so verall system cost reduction, energy arbitrage, voltage profile improvement, and congestion management in distribution grids. These findings highlight the significance of utilizing ESS technologies to provide aggregated value through various grid services, extending beyond energy arbitrage alone.