Regulatory Issues in the Deployment of Distributed Storage Devices in Distribution Networks

Abstract

In this paper, a number of possibilities are presented and discussed for the ownership of distributed storage devices (DSD) in a Smart Grid environment. The cases in which the distribution system operator (DSO) has either full control (grid owned storage) or no control whatsoever over the operation of the DSD (independently owned storage) will be differentiated. For each ownership possibility, the technical and regulatory implications are discussed, with analysis and validation of the results being performed on real MV distribution networks, both rural and urban. In order to evaluate each ownership possibility, a number of multi-period optimization models are presented, corresponding to different assumptions in regards to the operation of the DSD. The resulting daily operation strategies are subsequently used as a basis for carrying out distribution reinforcement planning.