Battery system as a service for a distribution system operator

Abstract

Benefits of battery systems in the distribution networks have been widely identified, but current regulation model prohibits the distribution system operators (DSOs) from owning and operating these systems. This paper presents a novel business model where an aggregator company makes the investment to the battery system and offers the system as a service for the DSO.This business model, and related different revenue streams and cost savings required to make the business case viable, are defined in this paper. The suggested model creates a market place for the DSO, where they can purchase reservation time from the battery, which enables them to technically and economically benefit from the battery system. This service and business model are compatible with the current regulatory environment.