Interaction between the Distribution System Operator and the Battery Storage Operator for Flexibility Procurement Services

Fast penetration of the renewable energy sources and transition toward sustainable energy supply paradigm is currently an ongoing process. It comes with many environmental benefits, but it also creates many challenges. Distribution System Operators are forced to move on from the fit-and-forget approach and take more active role in operating distribution system to face problems such as bidirectional power flows, congestion and voltage limits violation. This article, taking into consideration that regulated entities cannot interfere with market activities, proposes interaction between distribution system operator and battery storage operator for flexibility procurement and investing in battery storage units at the most critical points in the network. Firstly, using AC OPF, most critical nodes are detected and then optimal energy and power capacity of the battery storage units are determined. Value of the flexibility service is determined by observing the profit difference from an optimal market participation strategy with and without network constraints.