Battery Energy Storage Concepts and their Potentials for Local Energy Communities from a Local Utility Point of View

The transition of the energy sector towards renewable energy results in different technical requirements for local utilities. Due to the volatility of renewable energy sources, battery energy storage systems come into focus. Given the decentralization of energy production with solar power plants, new energy systems such as the formation of local energy communities or the application of different battery energy storage systems (BESS) for urban areas are being developed. These developments require local utilities to adopt their business models. Through a single case study of a German utility, operating a local energy district, the research identifies potential business models for local utilities involving BESS. Three scenarios of BESS deployment are analyzed, revealing that combining home and district storage systems can enhance economic viability and grid stability. The findings highlight novel business opportunities for local utilities, such as offering renewable energy services, grid support, and leveraging energy-related data insights. The study concludes that while BESS can foster high energy self-sufficiency and grid support, regulatory and economic factors significantly influence their implementation. Future research should consider the impact of second-life vehicle batteries and the rising demand for urban fast-charging infrastructure on BESS-based business models for local utilities.