Local energy markets to sustain distribution network storage

Energy storage in distribution networks as a means of enabling distributed renewable generation has been widely discussed. However, little attention has been given to how such storage may be made economically viable. Present energy market models are inimical to deployment of storage in the network. As an alternative, this paper introduces the mechanics of local energy markets in which energy prices are set freely between participants, in real time. It reports modelling, simulation and laboratory trial of such markets. It shows that a local energy market can enable financial return for energy storage when deployed as a commercial instrument. It incidentally demonstrates that where a local energy market coincides with a low-voltage feeder, commercial storage management tends to reduce peak flows at the constrained interface between the low-voltage feeder and the distribution network. Increased densities of distributed generation are, therefore, made possible. Trading intervention by network operators may influence storage behaviour in ways that reduce the peak flows further.