Assessing the Impact of Distributed Energy Storage in Future Distribution Grids

The growth of distributed energy storage (DES) in the future power grid is driven by factors such as the integration of renewable energy sources, grid flexibility requirements, and the desire for energy independence. Grid operators have published future energy scenarios projecting the widespread adoption of DES, prompting the need to investigate its impact under different operational modes. This study develops case models and conducts case studies to explore the implications comprehensively. The findings highlight the importance of coordinating the operation of DES to address grid issues and mitigate charging during high carbon dioxide (CO₂) emissions periods. Uncoordinated DES operation can lead to significant grid challenges and high emissions impacts. Conversely, when DES is aggregated and operated in a coordinated manner, it demonstrates the potential to alleviate grid problems and avoid charging during high-emission hours. The study highlights the existence of trade-offs among DES profit, network reinforcement cost, and CO₂ emissions. Accounting for the network reinforcement costs has a 13% negative impact on DES aggregator profits, while accounting for CO₂ costs could lead to a larger decrease of 35%. These findings highlight the need for proper regulation and policy implementation to ensure adequate compensation for DES aggregator and incentivise the coordination potential while balancing the trade-offs among these objectives.