Assessing the value of energy storage systems for distribution grid applications
Sahar Moghimian Hoosh, Henni Ouerdane, Vladimir Terzija, David Pozo
TL;DR
This paper develops a DistFlow-based MIQCP framework to size, siting, and operate energy storage systems (ESS) in distribution grids. By integrating an ESS model with charging/discharging complementarity, state-of-energy dynamics, and inverter reactive support, the approach jointly optimizes generation, ESS investment, and ESS operation across representative days and PV scenarios. Applied to a modified IEEE 33-bus network, the study demonstrates that a centralized ESS located at bus 29 (710 kWh) can substitute voltage-support devices, reduce overall costs, enable energy arbitrage, and alleviate congestion, with notable improvements in voltage profiles and line utilization. The work highlights the aggregated value of ESS for multiple grid services beyond simple energy arbitrage and points to future research on multi-ESS coordination and faster solution techniques to support planning-scale deployment.
Abstract
We analyze the potential benefits that energy storage systems (ESS) can bring to distribution networks in terms of cost, stability and flexibility. We propose an optimization model for the optimal sizing, siting, and operation of storage systems in distribution grids. A DistFlow formulation is used for modeling the 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. The optimization model is assessed on the modified 33-bus IEEE network, which includes renewable energy resources and ESS. The obtained results show that ESS can offer various important benefits such as overall cost reduction, energy arbitrage, voltage regulation, 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.
