Title: Document Version:: Ref. Ares (2019) 2890338 - 30/04/2019

Ref.
Ares(2019)2890338 - 30/04/2019
Title: Document Version:

D7.1 Analysis on distributed energy storage technologies in networks with RES 1.7
Project Number: Project Acronym: Project Title:

H2020- 773430 CROSSBOW CROSS BOrder management of variable renewable energies
and storage units enabling a transnational Wholesale
market.
Contractual Delivery Date: Actual Delivery Date: Deliverable Type*-Security*:

M18 (04/2019) M18 (04/2019) R-PU
*Type: P: Prototype; R: Report; D: Demonstrator; O: Other.
**Security Class: PU: Public; PP: Restricted to other programme participants (including the Commission); RE: Restricted to a group
defined by the consortium (including the Commission); CO: Confidential, only for members of the consortium (including the
Commission).
Responsible: Organisation: Contributing WP:

Alessandra Parisio UNIMAN WP7
Authors (organisation):
Xiao Wang (UNIMAN), Alessandra Parisio (UNIMAN), Sofia Roti (PPC), Anastasios Varthalis (PPC), Anestis
Anastasiadis (PPC), Dušan Prešić (SCC), Filip Aleksić (SCC), Marta Gačić (SCC), Daniel Rayo (COBRA), Jose Miguel
Estebaranz (COBRA), Petar Krstevski (UKIM), Stefan Borozan (UKIM), Aleksandra Krkoleva Mateska (UKIM), Vesna
Borozan (UKIM), Rubin Taleski (UKIM), Maricarmen Bueno (ETRA), Luis Viguer (ETRA), Lucas Pons (ETRA), Tadeja
Babnik (ELPROS), Radoš Čabarkapa (EPS), Hrvoje Keko (Koncar), Kraft, Benjamin (VARTA), Aleksandra Ivanovska
(ELEM).
Abstract:
This deliverable provides an overview of the existing and future availability and use of different distributed energy
storage technologies at regional and pan European level for provision of different types of services to transmission
network with the emphasis on improved cross border power transfer and voltage and frequency regulation services.
Building on-top of WP1.2 identified requirements, the focus will be on identifying their advantages and
disadvantages, scalability and policy and market enabling actions.
Keywords:
D7.1, CROSSBOW, Distributed Energy Storage, Cross Border, Voltage and Frequency Regulation
© CROSSBOW Consortium http://crossbowproject.eu/

CROSS BOrder management of variable renewable energies
and storage units enabling a transnational Wholesale market
Revision History
Revision Date Description Author (Organisation)
V1.1 30.01.2019 Preliminary content from partners EMS/EPS, COBRA, SCC, VARTA,
PCC, UNIMAN, ETRA, UKIM
V1.2 08.03.2019 First draft EMS/EPS, COBRA, SCC, VARTA,
PCC, UNIMAN, ETRA, UKIM
V1.3 25.03.2019 Revised version UNIMAN
V1.4 02.04.2019 Further revised by partners. EMS/EPS, COBRA, SCC,
UNIMAN, ETRA, UKIM
V1.5 16.04.2019 Review of the deliverable ETRA, ELPROS
V1.6 25.04.2019 Review of the deliverable ELEM, SCC, VARTA
V1.7 29.04.2019 Final version UNIMAN
This project has received funding from the

European Union’s Horizon 2020 Research and Innovation Programme
under Grant Agreement № 773430.
More information available at https://crossbowproject.eu
Copyright Statement
The work described in this document has been conducted within the CROSSBOW project. This document
reflects only the CROSSBOW Consortium view and the European Union is not responsible for any use that
may be made of the information it contains.
This document and its content are the property of the CROSSBOW Consortium. All rights relevant to this
document are determined by the applicable laws. Access to this document does not grant any right or license
on the document or its contents. This document or its contents are not to be used or treated in any manner
inconsistent with the rights or interests of the CROSSBOW Consortium or the Partners detriment and are not
to be disclosed externally without prior written consent from the CROSSBOW Partners.
Each CROSSBOW Partner may use this document in conformity with the CROSSBOW Consortium Grant
Agreement provisions.
D7.1 Analysis on distributed energy storage technologies in networks with RES 2

Table of Contents
1 INTRODUCTION ................................................................................................................. 11
1.1 Purpose of the document .................................................................................................... 11
1.2 Structure of the document .................................................................................................. 12
2 Existing Energy Storage Facilities and Applications in Transmission and Distribution Levels 13
2.1 Energy Storage Technologies .............................................................................................. 13
a) Applications of energy storage in power networks ........................................................ 14
b) Questionnaire............................................................................................................... 15
2.2 Penetration levels of renewable generations in South East EU Consoritum Partners ....... 15
2.3 Storage capabilities IN the Consortium RegionS ................................................................. 18
a) Pumped- storage hydroelectricity (PSH) plant .............................................................. 19
b) Applications of PSH ..................................................................................................... 20
c) Market participation ......................................................................................................... 21
d) Distributed storage ....................................................................................................... 21
e) Envisaged storage installation ...................................................................................... 22
f) Policy constraints ............................................................................................................ 23
3 An Overview of Existing Availability and Use of Distributed Storage Technologies at Pan

European Level [12] ............................................................................................................... 25
3.1 Classification and types of storage systems ........................................................................ 26
a) Electrochemical energy storage systems ..................................................................... 27
b) Thermal storage (power to heat) .................................................................................. 29
c) Other storage technologies.............................................................................................. 30
d) Chemical storage ......................................................................................................... 32
e) Electromagnetic storage .............................................................................................. 33
f) Hybrid storage technologies ............................................................................................ 36
3.2 Advantages and disadvantages of different storage technologies ..................................... 37
a) Pumped hydropower storage ....................................................................................... 37
b) Compressed air energy storage ................................................................................... 39
c) Batteries [70], [83] ........................................................................................................... 40
d) Kinetic Energy Storage or Flywheel Concept ............................................................... 42
e) Superconducting Magnetic Energy Storage ................................................................. 42
3.3 Services of energy storage systems ..................................................................................... 42
a) Customer services ....................................................................................................... 43
b) Independent System Operator (ISO) & Regional Transmission Organizations (RTO)
services ................................................................................................................................. 44

c) Utility services ................................................................................................................. 45

d) Business models [67] ................................................................................................... 46
4 Envisaged distributed storage Capabilities and Their Applications in European Networks .. 47

4.1 Envisaged distributed storage at European level – driven force, and deployment ............ 47
a) Self-sufficiency ............................................................................................................. 50
b) Self-consumption and local grid-support ...................................................................... 51
4.2 Practice of Greece on Future Storage Technologies ........................................................... 53
4.3 Practice of Serbia on Bulk storage Technologies................................................................. 54
5 Storage Potentials Regarding Increased RES Penetration in Future Networks ..................... 58

5.1 RES penetration future scenarios ........................................................................................ 58
5.2 Expected RES penetration per country ............................................................................... 59
5.3 RES impact in STORAGE future scenarios ............................................................................ 64
5.4 Analysis of sTORAGE technologies AT dISTRIBUTED lEVEL ................................................. 65
6 An Overview of Existing Policy and Market Enabling Distributed Storage Actions ............... 66
6.1 Market integration of distributed energy storage .............................................................. 66
a) Value of energy storage in power systems ................................................................... 66
b) Business case for energy storage ................................................................................ 67
c) Energy Storage participation in different markets ............................................................ 68
d) Aggregation of distributed storage................................................................................ 69
e) Regulatory and market barriers .................................................................................... 70
f) Market perspectives ........................................................................................................ 71
7 Technical Requirements of the VSP product and Scenarios in CROSSBOW .......................... 73

7.1 Crossbow Products involved in Virtual storage plants (HLU5) ............................................ 73
7.2 Technical requirements ....................................................................................................... 74
7.3 Potential future HLU5 scenarios.......................................................................................... 80
7.4 Market participation of CROSSBOW VSP ............................................................................ 81
7.5 Market participation in the region of South-East Europe ................................................... 83
8 Conclusion ........................................................................................................................ 84
9 References ........................................................................................................................ 86

List of Figures
Figure 1. Classification of EES technologies by the form of stored energy [3] .................................... 13
Figure 2. Network demands and renewable generation mix in the regional networks...................... 16
Figure 3. The combined records of maximum renewable generations in the consortium region...... 17
Figure 4. Penetration levels of non-dispatchable renewable power (wind and PV) in percentage of peak loads
............................................................................................................................................................. 18
Figure 5. Capacity of total storage facilities to the peak demands of the networks........................... 18
Figure 6. Preferred services from storage technologies for TSOs ....................................................... 23
Figure 7. Maturity of energy storage technologies [13] ...................................................................... 25
Figure 8 Efficiency of different battery storage systems measured over a long-term period [17]..... 28
Figure 9 Locations of PSH plants on Europe [54] ................................................................................ 38
Figure 10. Storage layout diagram (© KBB Underground Technologies GmbH). ............................... 40
Figure 11. Electricity storage diagram [12].......................................................................................... 43
Figure 12. Sketch of power flow of centralized and decentralized energy production (left), interconnection of
energy cells (right) ............................................................................................................................... 48
Figure 13. Measured exchange with the HV grid at two HV/MV transformer stations in Germany [72] 48
Figure 14. Influence of LV storages on HV/MV transformer loading and MV grid losses [72] ........... 49
Figure 15. Layout of the future European energy system ................................................................... 49
Figure 16. End user price for stationary battery storage systems (based on [73]) ............................. 50
Figure 17. Operation strategy for pure self-consumption [74] ........................................................... 51
Figure 18. Operation strategy for self-consumption and grid support [74] ........................................ 51
Figure 19. Average State of charge a typical battery storage system depending on month of the year52
Figure 20. Operation strategy for self-consumption, grid support and SCR (frequency support) [74]53
Figure 21. Lisina pumps and Vlasina HPP ............................................................................................ 56
Figure 22. The TYNDP 2018 scenarios for 2030 and 2040 based on three storylines [84] ................. 58
Figure 23. RES penetration in all TYNDP2018 – years and scenarios [85]........................................... 59
Figure 24. Electricity demand based on different future scenario...................................................... 60
Figure 25. DG scenario 2020+25+30DG+40DG.................................................................................... 61
Figure 26. ST scenario 2020+25+30ST+40ST ....................................................................................... 62
Figure 27. CGA scenario 2020+25+30ST+40DG ................................................................................... 62
Figure 28. DG scenario 2020+25+30DG+40DG.................................................................................... 63
Figure 29. ST scenario 2020+25+30ST+40ST ....................................................................................... 63
Figure 30. CGA scenario 2020+25+30ST+40DG ................................................................................... 64
Figure 31. ESS services across different time horizons [92] ................................................................ 67
Figure 32. Representation of multi-service provision of a distributed ESS [92] ................................. 68
Figure 33. Aggregated ESS value from the participation in different markets in Great Britain [98]... 68
Figure 34 Provision of bids to markets for different products ............................................................ 82

Figure 35 Actions to deliver services for the accepted bids ................................................................ 83

List of Tables
Table 1. Power rating and energy rating of storage in the consortium counties................................ 18
Table 2. Information of PSH plants in each of the consortium country .............................................. 19
Table 3. Services provided by PSH plants ............................................................................................ 20
Table 4. Envisaged storage capacities in the region ............................................................................ 22
Table 5. Overview of the characteristics of energy storage systems [14]........................................... 26
Table 6. Values of different battery cells [16] ..................................................................................... 27
Table 7. Technologies comparative assessment [19] .......................................................................... 28
Table 8. Technologies comparative assessment [20] [14] .................................................................. 30
Table 9. Technologies comparative assessment ................................................................................. 31
Table 10. Fuel cell comparison ............................................................................................................ 33
Table 11. Characteristic parameters of electrical storage systems [27] [49] ...................................... 35
Table 12. List of Energy Storage Technologies [83] ............................................................................. 37
Table 13. Pumped hydropower storage: Pros and Cons ..................................................................... 38
Table 14. Lead-Acid Batteries: Pros and Cons ..................................................................................... 41
Table 15. Lithium-Ion Battery: Pros and Cons ..................................................................................... 41
Table 16. Flywheels: Pros and Cons..................................................................................................... 42
Table 17. Superconducting magnetic energy storage: Pros and Cons ................................................ 42
Table 18. Main characteristics of the PSH Bajina Bašta ...................................................................... 55
Table 19. Main Characteristics of the Vlasina HPPs ............................................................................ 56
Table 20. Storage and RES penetration ............................................................................................... 64
Table 21. Examples of services of batteries at Distribution level [88] ................................................ 65
Table 22 CROSSBOW products involved in HLU5 ................................................................................ 73
Table 23 Summary of HLU5 product requirements ............................................................................ 75

List of Abbreviations
Acronym Explanation
aFRR Automatic Frequency Restoration Reserve
AGC Automatic Generation Control
AM Ancillary Market
API Application Programming Interface
BESS Battery Energy Storage System
CAES Compressed Air Energy Storage
CBG Coal Before Gas
CHP Combined Heat and Power
CSP Concentrated Solar Power
DAM Day-ahead Market
DEFC Direct-Ethanol Fuel Cell
DER Distributed Energy Resources
DG Distributed Generation
DMFC Direct-Methanol Fuel Cell
DSM Demand Side Management
DSO Distribution System Operator
ESS Energy Storage System
EU European Union
EV Electric Vehicle
FACT Flexible AC Transmission
FCR Frequency Containment Reserve
FES Flywheel Energy Storage
FRR Frequency Restoration Reserve
GBC Gas Before Coal
GCA Global Climate Action
GES Gravity Energy Storage
HESS Hybrid Energy Storage System
HFC Hydrogen Fuel Cell
HLU High Level Use case
HPP Hydro Power Plant
IDM Intra-day Market
IEDS Intelligent Electronic Devices
IBEX Independent Bulgarian Energy Exchange
ISO Independent System Operator
LAES Liquid Air Energy Storage

LPES Liquid- Piston Energy Storage

MCFC Molten Carbonate Fuel Cell
mFRR Manual Frequency Restoration Reserve
M2M Machine-to-Machine
RES Renewable Energy Sources
RR Replacement Reserve
RTU Remote terminal unit
RTO Regional Transmission Operator
ROC Regional Operation Centre
SCR Secondary Control Reserve
SCADA Supervisory Control and Data Acquisition
SMES Superconducting Magnetic Energy Storage
ST Sustainable Transition
STO-CC Regional Storage Coordination Centre
SOFC Solid Oxide Fuel Cell
T&D Transmission and Distribution
TRL Technology Readiness Level
TSO Transmission System Operator
PCM Phase Change Material
PMU Phasor Measurement Unit
PSH Pumped Storage Hydroelectric
PV Photovoltaic
UPS Uninterrupted Power Supply
VSP Virtual Storage Plant
VPP Virtual power plant
WAMAS Wide Area Monitoring and Awareness System

Executive Summary
This report presents a comprehensive overview of existing and envisaged storage technologies in the
European level, paying special attentions to the interactions between renewable energy sources (RES)
integration and storage technology development. Generally speaking, the ambitious increment of RES drives
the development of emerging storage technologies, and the successful applications of storage enhance
network flexibility and security in terms of dynamic supports (e.g. frequency and voltage regulations) and
steady-state performance (e.g. congestion management). Particularly, in order to enable actions of
distributed storage closed to the end-users, cooperation between Transmission System Operator (TSO) and
Distribution System Operator (DSO) is required, in such a way that the storage facilities can not only improve
self-efficiency and local reliability, but also participate in frequency and voltage regulations in the
transmission levels.
This report starts with a survey of existing storage assets and their applications in the South East Europe,
which covers most of the consortium countries. It is evident that significant RES increases are happening in
the past few and close future decades within Europe, especially non-dispatchable renewable generations in
recent years, which is proved by the information provided by TSOs and identified RES scenarios in the future.
As a result, most of the consortium countries have concrete plans to expand storage assets, most of which
are existing large pumped-storage hydroelectricity (PSH) plants. Additional storage facilities might be
deployed closed to renewable power plants as well. In addition to the bulk storage technologies, the
information related to the current operating experience and envisaged employment of distributed storage
technologies is quite limited. But, most TSOs/DSOs have realized the potentials of such small storage assets
dispersed in the system and closed to the end users. Several ongoing projects are carried out to demonstrate
the concepts.
Power network applications are essential for energy storage technologies from the system operation’s point
of view. Most of the existing storage facilities can participate in system energy management, i.e. energy
arbitrage at the generation side and peak shaving and load levelling at the customer side. From a TSOs’
perspective, in addition to energy arbitrage, bulk storage technologies are commonly used for ancillary
services to guarantee the network reliability in real time, although only a few of the consortium countries
have regulation frameworks enabling such actions. When it comes to distributed storage technologies,
considerable efforts are still required to justify their cost-effectiveness in grid applications, although their
technical features and capabilities are widely studied in research. It is proved that storage technologies
providing a series of grid applications would be beneficial to both network and asset owners. However,
sophisticated scheduling is need for optimal storage units, which brings up the concept of virtual storage
plant (VSP), using as an aggregator to coordinate individual storage devices within the region.
To promote the technological development and grid applications of storage technologies, the market and
regulation framework play important roles for increasing investment. However, neither of the energy
markets and regulations are satisfying in the consortium countries for the time being. Storage units can be
actors for multiply markets, including the forward markets, balancing markets and reserve markets. This
makes it difficult to remunerate the storage for the delivered services, in spite of their non-energy benefits
and double payments for network usages. Besides, considering the consortium countries have distinct
market structures, a complete revolution of energy storage might be necessary to provide services in a cross-
border sense. As for distributed storage technologies, appropriate rules need to be established in order to
separate the revenue with in VSP as well.

1 INTRODUCTION
1.1 PURPOSE OF THE DOCUMENT
The European member states have developed National Renewable Energy Action Plans (NREAP) to define
the paths for achieving significant RES penetration in 2020. In such high renewable scenarios, applications of
energy storage technologies could potentially contribute to total system savings. Bulk and distributed storage
systems are connected to different sectors of power networks, including generation, transmission and
distribution levels. Strategic studies indicate that the value of storage systems in low carbon energy systems
having large concentrations of renewable generation is significant, and it is likely that a portfolio of different
storage technologies will be required to suit a range of applications [1]. Although technical innovations of
storage usage are advancing and improving, challenges still exist to justify that the investment of storage can
be adequately rewarded in the current market structures, which need to be improved to prevent posing
barriers on cost-effective storage applications.
In this report, an overview of the existing and future availability and usage of different energy storage
technologies at regional and pan European levels are given. The report provides insights on the current stage
and future development of storage employment, with attentions paid to the impacts of RES and current
market statues. The existing experience of storage operations are those related to bulk storage facilities,
while envisaged storage development mainly focuses on distributed storage technologies. This analysis will
serve as a basis for the scenario definitions and algorithm developments enabling the functionalities defined
in High Level Use Case Higher Level Use Case 5 (HLU 5) dedicated to VSP.
In order to collect relevant information to broadly estimate existing storage capacity and their potentials in
European transmission and distribution network, a survey is performed based on the statistics and scenarios
in the consortium counties, which are mainly located in the south east part of Europe. The increases of RES
in generation mixes show promising trends especially in recent years. The policy (e.g. EU Energy Roadmap
2050) is one reason behind this ambitious movement driving renewable energy exploitation, as most of the
consortium countries have reached agreements of certain levels to achieve significant RES penetration within
pan European level.
The aggressive deployment of RES poses reliability issues on network operations while opens new areas for
energy storage devices. In most of the consortium countries, bulk storage devices are available for energy
management, but the ancillary services can be delivered by such large and centralized storage assets are still
limited. The current regulation frameworks prevent full participating of bulk storage systems providing
services in the market. Compared to the bulk storage facilities, distributed storage technologies providing
flexibility at the customer side are more attractive options, but almost none of the TSOs within the
consortium countries have experience in operating smaller storage geographically dispersed in the networks.
Therefore, the value of distributed storage needs to be further demonstrated with appropriately designed
coordination methods and remuneration mechanisms.
This document is prepared by UNIMAN and jointly developed by CROSSBOW partners, which include PCC,
EPS, ELEM as energy producers, VARTA, ETRA, COBRA from industry, EMS as system operators, and SCC as
regional security coordinator, including UKIM as university. The report addresses the current status and
anticipated deployments of electric energy storage at South East European (SEE) region, with a particular
focus on distributed storage technologies, and the existing policies and market enabling storage
participations, as well as the impacts of storage on future RES integrations. The presented information covers
both transmission and distribution levels of the consortium regions. The TSO-DSO cooperation will be an
important concept to be demonstrated within the work package, so as to enable the adequate distribution
network flexibility coming from VSP. The supports from TSOs/DSO (ESO, HEDNO, HOPS, CGES, IPTO, MEPSO,
NOSBiH, TRANS and EMS) in the consortium countries are indispensable parts during the preparation of the
document.

1.2 STRUCTURE OF THE DOCUMENT

This document is organised in the following main chapters to cover the mentioned contents in previous
section:
Existing energy storage facilities and applications
A general overview of existing storage facilities and their applications in the areas are given in Section 2. With
the participation of all TSOs/DSO involved in the Task 7.1. This chapter reports the background of storage
development, available capabilities and existing services that storage can provide to the networks, as well as
the remuneration ways regarding bulk storage plants available in some of the consortium countries.
Furthermore, we present the expected storage installations with particular focus on distributed storage,
along with the preferred services delivered by these new deployments. A brief discussion on the barriers
preventing future storage investment is also included.
An overview of existing availabilities and usages of distributed storage at the European level
Section 3 gives a general overview of existing storage technologies, which are categorized according to the
materials used to store energy. The functional principle, characterises and constraints with respect to
individual category of storage technologies are discussed. Furthermore, the advantages and disadvantages
regarding specific storage device are listed considering different scenarios of applications. Finally, the
available applications of the mentioned storage technologies are given.
Envisaged capabilities and applications of distributed energy storage
Section 4 reviews the anticipated distributed storage technologies at the pan European level. Special
attentions are given to the driven forces, expected applications and deployments of distributed storage for
future scenarios. It indicates that storage units trying to maximize self-efficiency and simultaneously provide
supports to distribution and transmission networks can obtain higher revenue, but sophisticated scheduling
methods might be required. Finally, practices of TSOs in Serbia and Greece for the employment of bulk and
distributed storage are presented.
Potentials of energy storage under high RES penetration
Section 5 reports the capability to increase RES penetration of identified future possible scenarios of
availability and use of different distributed energy storage technologies. This chapter gives the future
scenarios of RES penetration and analyse the cases for different countries. The analysis of how the RES can
impact the future scenarios and the benefits of storage applications in distribution levels are included.
Policy and market enabling actions from distributed energy storage
The current regulation framework and market mechanism are the two main barriers hindering installation
and application of bulk and distributed Energy Storage Systems (ESSs). Storage systems can participate in
various types of services with different scale of time horizons, which makes it difficult to quantify system
benefits and market revenues. Chapter 6.1 summarizes ESS services from the market perspective and analyse
different types of markets in which the storage can offer their power and capacity. As for distributed storage,
proper aggregations are needed to provide combined services/products. The regulation and market barriers
are discussed further and some proposals facilitating ESSs’ full participations in the market are given.
Technical Requirement of CROSSBOW products related to VSP
In Section 7, the technical requirements of CROSSBOW products relevant to VSP are summarized based on
the Deliverable 2.1 “CROSSBOW project requirement definition”. Several possible scenarios of availability
and use of distributed energy storage technologies are presented.

2 EXISTING ENERGY STORAGE FACILITIES AND APPLICATIONS IN TRANSMISSION

AND DISTRIBUTION LEVELS
2.1 ENERGY STORAGE TECHNOLOGIES
The topologies and operating schemes of electrical power systems have been evolving since the development
of AC transmissions. Nowadays, the electric networks are featured by their increased demands and
complicated dynamic response due to the integration of renewable energy sources (RES) and deregulations
as well. ESSs, in this context, are regarded as promising technologies to provide enough flexibility and deal
with the raised challenges in power networks.
The applications of ESS in power grids can be dated back to several decades ago. In conventional power
networks, ESSs in terms of PSH plants are widely employed to provide energy arbitrage and services. One of
the major functions of PSH is to provide reserve capability and thus improve the efficiency (and reduce
emission) of thermal power plants that cover base loads [2]. The installation and commission of PSH plants
extremely thrived at that time as the price of fossil fuel went up. However, due to the concerns on site
selection and deregulations, the implementation of PSH was restricted afterwards [3][4].
In the recent decade, due to the public’s debates on carbon footprint and sustainable development, countries
declared ambitious policies to enhance penetration of renewables in power networks. Grid codes are revised
accordingly to accommodate large-scale integration of non-dispatchable, intermittent renewable energy
sources. This situation shifts the interests of academia and industry back to storage systems, which are of
great potential to further improve the cost-effectiveness and flexibility of the electric grids. In addition to
PSH, various storage technologies are explored and improved in recent decades, such as
• battery energy storage systems (BESS),
• flywheel, compressed air energy storage (CAES),
• superconducting magnetic energy storage (SMES), etc.
Compared to a single PSH, a combination of different storage technologies provides more effective solutions
to cover a range of required services, thus improving the technical and economical features of the power
networks. Nevertheless, some problems regarding the employment of ESSs are still open and challenging,
from both technical and economic aspects. Efforts are needed to understand and extract full potentials of
storage participating in electric grids, which will in return motivate large-scale ESS investment and integration
in future.
Figure 1. Classification of EES technologies by the form of stored energy [3]

ESS technologies can be categorized according to the form of energy stored in the storage system. For
example, PSH, CAES and flywheel convert electric energy into mechanical energy; batteries store energy in
terms of electrochemical energy; supercapacitor and SMES store energy in electric forms [3]

ESS can be compared related to the performance and technical characteristics such as [3]:
• Energy density
• Power density
• Energy capacity
• Response time
• Storage duration
• Discharge time,
• Etc.
From power system perspective, a more general categorization of ESS technologies is based on the services
they can provide such as energy management, ancillary services, etc. Supercapacitor and flywheel are
commonly known for their high-power density and low-energy density, and thus they are more suitable in
high-power application requiring fast storage response. By contrast, PSH and CAES are widely used in high-
energy situations with the response sustaining for several hours, e.g., for peak shaving and load levelling and
load following. BESS units have a desired balance of energy density and power density compared to the two
categories mentioned above. Their response is much faster than the storage technologies relying on rotating
machines. Appropriate aggregation of separate BESS units makes it possible for both short-term and long-
term applications. However, frequent charging and discharging should be prevented considering limited cycle
[4] lives of BESS, and the size storage should be carefully optimized considering high capital cost at the current
stage.
a) Applications of energy storage in power networks

A common application of storages is for energy trading, e.g. providing their capacities in the energy markets,
which includes day-ahead market (DAM), intra-day market (IDM) and balancing markets. Since the power
supply will not exactly equal to the demands, the continued power delivered by generating sources in real-
time is treated as energy services, which is called ancillary services as they guarantee the qualities of electric
energy transfer. The ancillary services typically include regulating services, load following services and
reserve services [3]. Similarly, the applications of ESS technologies cover both energy trading (in forward and
spot markets) and ancillary services, which can be further categorized as follows [2][5]:
• Power quality enhancement: the response of storage sustains for seconds, ensuring reliability of
power supply.
• Bridging power: the response of storage sustains for seconds to minutes, guaranteeing continued
power supply.
• Energy management: the storage participates in network regulations for hours to decouple the
timing of generation and consumption of electric energy.
More specific services include:
• Energy arbitrage;
• Peaking shaving;
• Reserve capacity;
• Voltage and frequency regulations;
• Transmission and distribution investment deferral, etc.
Besides, the applications of storage can be also categorized according to the markets they participate or
according to the roles of stakeholders who can benefit such services [7]. Note that different storage
technologies have their advantages and disadvantages in terms of different application scenarios, so a

combination of distinct storage devices would be a suitable solution that covers a wide range of services,
which enhances the capabilities of storage in grid applications.
b) Questionnaire
In order to perform such a survey identifying existing storage facilities and their applications across the
interested regions, we sent out questionnaires to collect necessary information from all TSOs/DSO among
our partners. The questionnaire is intended to collect relevant information to broadly estimate the existing
electrical energy storage capacities and potentials in the transmission (distribution) networks of consortium
regions, in which ESSs are deployed to increase the flexibility of operation of existing and future power
systems. The questionnaires are divided into two parts:
• The first part is related to the basic information about the capacities and services of existing storage
technologies,
• while the second part require more detailed explanations, comments and that from policy and
economic aspects
• Besides, the envisaged storage installations and applications are of interest in the survey.
2.2 PENETRATION LEVELS OF RENEWABLE GENERATIONS IN SOUTH EAST EU CONSORITUM

PARTNERS
In the first part of the analysis, we intend to give an overview of the renewable power generations in the
consortium region, as RES is one of the major forces driving the development of storage technologies. The
collected information includes the maximum and minimum yearly demand and amount of renewable
generation in respective networks.
Figure 2 presents the maximum and minimum recorded demands of TSOs (DSO) associated with the
penetration levels of renewables (represented in the ratio of the maximum daily network demands).
According to Figure 2, Romania (Figure 2 h) and Greece (Figure 2 e) hold similar and higher scales of power
demands among others. These maximum loads reach 9771MW (Greece) and 9480MW (Romania), as
documented on 18:00 – 19:00, 1st September 2017 and 17:00 – 18:00, 19th December 2016, respectively. By
contrast, the scales of the networks are smaller regarding the maximum loads in Macedonia and Montenegro.
Among the listed renewable generations, i.e., wind, PV, hydro, biomass and cogeneration, hydro power is
still the most mature renewable technology representing a large percentage of the renewable generation
mix. This is not surprising since hydro technologies have been developed for decades. Some commissioned
hydro power plants have been planned and operated for several decades in the regions. Most large HPP were
built in between 1960 – 1980, such as the PSH Bajina Bašta in Serbia constructed between 1976-1983 [6],
and the hydro plant development starts from 1950 in Greece. For example, in Bosnia and Herzegovina, the
large HPPs accounts to 2095 MW, while small wind and PV installations exit in the network compared to the
hydro power [8]. However, strict requirements on geographic terrains and locations of hydro power plants
significantly limit their future development. Other forms of renewable generations are increasing their
penetration in power networks, such as that in ESO’s (Figure 2b) and IPTO’s networks (Figure 2e). We also
notice that in the distribution network of Greece (HEDNO), power generated from PV represented
considerable parts (2384MW) in the energy mix, reaching 73% of the total renewable generation as shown
in Figure 2c, and obviously the capacity of hydro power does exist in the distribution level.

Max. 653,568 Max. 7690 Max. 3193

Demand Demand Demand
Min. 174,149 Min. 2325 Min. 1048

0 500 1000 0 5000 10000 0 2000 4000
Demand in MW (Montenegro) Demand in MW (Bulgaria) Demand in MW (Greece Dis.)
Renewable Generation (Montenegro) Renewable Generation (Bulgaria) Renewable Generation (Greece Distribution level)
10% 2% 17% 2%
6%2% 17%
56% 25%
90% 73%
Wind PV Hydro Biomass Cogen Wind PV Hydro Biomass Cogen Wind PV Hydro Biomass Cogen
(a) (b) (c)
Max. 7690 Max. 9480 Max. 1457

Min. 2325 Min. 3376 Min. 493

0 5000 10000 0 5000 10000 0 500 1000 1500
Demand in MW (Croatia) Demand in MW (Greece Trans.) Demand in MW (Macedonia)
Renewable Generation (Croatia) Renewable Generation (Greece Transmission level) Renewable Generation (Macedonia)
1% 20% 1%
1% 5%3%
27%
2% 41%
77% 30% 92%
(d) (e) (f)
Max. 2098 Max. 9771 Max. 7429

Min. 845 Min. 4085 Min. 2503

0 1000 2000 3000 0 5000 10000 0 5000 10000
Demand in MW (Bosnia and Herzegovina) Demand in MW (Romania) Demand in MW (Serbia)
Renewable Generation (Bosnia and Herzegovina) Renewable Generation (Romania) Renewable Generation (Serbia)
1%
0%
27%
60% 12%
100% 100%
(g) (h) (i)

Figure 2. Network demands and renewable generation mix in the regional networks

Cogen 46,5
Biomass 194,5
Hydro 14431
PV 3756,6
Wind 5703,911
0 2000 4000 6000 8000 10000 12000 14000 16000
Maximum recorded renewable generation (MW)
Figure 3. The combined records of maximum renewable generations in the consortium region
Figure 3 further shows the combined maximum renewable generation at the consortium region. Apart from
the hydro power, power generations from wind and PV are higher than those of Biomass and Cogeneration.
Only IPTO has cogeneration in its renewable energy mix, with a capacity of 69MW.
Wind and PV are the two main sources of emerging renewable technologies and they are also categorized as
non-dispatchable renewable generations. The large-scale integration of such intermittent, non-dispatchable
sources will pose challenges on the security and quality of power supply, influencing the steady-state and
dynamic performance of the electric networks. For example, more reserve capacity is required with respect
to frequency reliability in transmission level; in distribution level, the bidirectional power flows make the
voltage profile less flat in different durations [7]. The negative impacts from non-dispatchable renewables
should be properly deal with before their large-scale integration.
Operation of non-dispatchable energy sources is a main challenge faced by the system operators. Figure 4
shows the penetration levels of non-dispatchable renewable sources in the regional networks. The
renewable penetrations of some counties have attained advanced levels, such as 45.08% in Romania (TRANS),
49.25% in the transmission level of Greece (IPTO), 33.67% in the distribution level of Greece (HEDNO) and
22.68% in Bulgaria (ESO). Conventional generations might be capable of providing enough headroom and
response regarding the variations of renewable when the penetration is below certain level. However, as the
penetration levels of renewables keep increasing, most system operators have to consider deploying new
conventional generations with compatible capacities (e.g. 10% increase in wind penetration requires
increased synchronous generator capacity, which is 2-4% of wind power capacity [7]) to accommodate the
intermittency of renewables.
The consortium counties in the project also show significant increases of non-dispatchable RES in recent years.
According to the statistics in 2017, the non-dispatchable renewables constitutes large percentages of this
increased capacity. Taking Greece as an example, the installed capacity of RES in 2017 is shared among PV
(50%), wind (45%) and just a small share of hydro power plants (HPP) and biomass; the largest share of
installed RES capacity in Bulgaria consists of PV installations (>50%) and the rest is shared among wind, hydro
and biomass installations [8]. Under such circumstance, the storage technologies, especially those with small
capacities distributed at the edges of networks, become a rather attractive solution to improve flexibility and
security. Otherwise, the renewable generation might be curtailed due to congestion and stability issues,
which reduce the chance of renewable energy exploitation. In most of the consortium countries, RES holds
dispatch priority among other resources, so enough power reserves need to be provided by conventional
generations in case of a sudden output decrease of the renewable plant.

Serbia(EMS)
Romania(TRANS) 45,08
Bosnia and Herzegovina(NOSBIH)
Macedonia(MEPSO) 3,76
Greece Trans.(IPTO) 49,25
Croatia(HOPS) 19,64
Greece Dis.(HEDNO) 33,67
Bulgaria(ESO) 22,68
Montenegro(CGES) 11,03
0 10 20 30 40 50
Penetration levels of non-dispatachable renewable power (%)
Figure 4. Penetration levels of non-dispatchable renewable power (wind and PV) in percentage of
peak loads
2.3 STORAGE CAPABILITIES IN THE CONSORTIUM REGIONS

As mentioned above, storage facilities are indispensable parts of power networks. The services provided by
storage systems are crucial to maintain satisfied power supplies, especially when large-scale intermittent
renewable generations are connected into the grids. This survey covers information of existing storage assets
regarding their capacities, types, locations, voltage levels, charging/discharging patterns and applications in
the networks.
Storage Capacity to Peak Demands (%)
Romania(TRANS) 2,71
Serbia(EMS) 8,08
Bosnia and Herzegovina(NOSBIH) 20,97
Greece(IPTO) 6,02
Croatia(HOPS) 7,75
Bulgaria(ESO) 12,13
0 5 10 15 20 25
Figure 5. Capacity of total storage facilities to the peak demands of the networks
According to Figure 5, several TSOs have access to large storage assets in their networks to provide flexibility.
The capacities of storages range from 2.71% to 20.87% with respect to the peak loads in the respective
networks, which the storage capacities are quite limited in Macedonia (MEPSO), Montenegro (CGES). The
power and energy ratings of these storage assets are given in Table 1. Note that almost all of the storage
capacities come from PSH, while only 7.5 MW (15 MWh) EVs exist in Croatian networks. It shows that Bosnia
and Herzegovina holds large storage capacity but the penetrations of non-dispatchable renewables is
relatively low (according to Figure 4), which indicates great capabilities of the network to accommodate extra
amount of renewable generation.
Table 1. Power rating and energy rating of storage in the consortium counties
Countries Bulgaria Croatia Greece Bosnia and Serbia
Herzegovina

Power rating (MW) 933 240 +7.5 (EV) 571 440 680
Energy rating (MWh) 10977 1200 +15 (EV) 3400 200000
a) Pumped- storage hydroelectricity (PSH) plant

Most of the storage capabilities listed in Figure 5 are existed in forms of PSH plants in the networks. PSH
technologies have been developed for decades. It is still regarded as a main resource for balancing energy
and services, e.g. power reserves (with considerable reserve capability) and balancing services (frequency
response can be released in a short period). Detailed information about these PSH plants including their
operational features are listed below:
Table 2. Information of PSH plants in each of the consortium country

Country/System Power capacity Energy Voltage level Charging Discharging time Response time
Operator capacity time
Bulgaria (ESO) 1054 MW (Gen) 10977 MWh Generation 6-7 hours 4-5 hours 5 min (start-up)
932 MW (Pump) 110-220kV 00:00 – 07:00 08:00 – 11:00 1 min (load
and 400kV 12:00 – 17:00 18:00 – 23:00 following)
Croatia (HOPS) 276 MW (Gen) 1200 MWh Transmission 5 hours 3 hours Less than 5 min
240 MW (Pump) 400 kV 01:00 – 06:00 18:00 – 23:00
Greece (IPTO) 571 MW Generation Hours Minutes Less than 15 min
400 kV 02:00 – 07:00 07:00 – 15:00
15:00 – 17:00 17: 00 – 02:00
Serbia (EMS) 680 MW (Gen) 200000 MWh Transmission Hours Hours 15 min (not in
560 MW (Pump) 110 – 220 kV 23:00 – 06:00 18:00- 22:00 operation)
13:00 – 16:00 08:00 – 12:00 1 min (in
operation)
Bosnia and 440 MW 3400 MWh Generation 6 hours 4-8 hours 15 min
Herzegovina 110 – 220 kV 00:00 – 06:00 14:00 – 18:00
(NOSBiH) 18:00 – 23:00
According to the collected information in Table 2, Bulgaria, Croatia, Greece, Serbia and Bosnia and
Herzegovina operate PSH assets in their power networks as flexibility resources. Most of these large storage
systems are deployed at the generation sites or at the transmission levels at 400kV or 110 – 220kV,
dispatched and controlled by the system operators in a centralized manner. Charging and discharging of PSH
normally takes hours. Charging happens after midnights when the system demands are low and discharging
happens during peak hours. For example, the storage facilities store the energy from based load plants (e.g.
nuclear plants) during night for later use during peak hours at morning and evening. Besides, the response
of PSH can be fully deployed in less than 15 minutes in general, and as spinning reserve, such response can
be extracted within 1 minute in case of network contingencies. These reserve capabilities are significant
sources of frequency repose to balance the supplies and demands in real time.
We notice that all of the counties in this survey have considerable hydro power in their renewable generation
mix (Figure 3), but only parts of these hydro capabilities are used as storage facilities. For example, in
Romanian network, the hydro power (5 pumped hydro power plants with a total capacity of 265MW) are
used only in generation mode because the PHS operating in pumped mode cannot be fully remunerated (the
current primary market prices in the region do not really cover the excess wear of the equipment when
working in pumped mode). Within the same PSH facility, the power ratings of generation mode and pumping
mode are also different. The units are operated at their maximum output in the pump mode at Bulgaria,
because of the hydro-technological constraints. EMS also provides the information that pumping mode is
dominant during the spring while generation mode is dominant during the winter in Serbia.

b) Applications of PSH
The types of different applications provided by storage facilities are listed in Table 3. It shows that storage
assets in all TSOs are mainly used for energy trading, i.e. buying energy from the market when the price is
low and sell them in high-price duration. Another important functionality of PSH is to provide ancillary
services, including operating reserves, frequency and voltage regulations, etc. PSH is a main resource of
reserve capacity, e.g. spinning reserve (used in contingencies), ramping reserve (load following reserve for
unpredicted load variations and RES ramps beyond daily loads) and so on. Other functions provided by PSH
include the area regulation and transmission congestion relief in areas of high concentrations of RES.
Table 3. Services provided by PSH plants

System Frequency Reserve capacity Energy trading Energy services Voltage Others
operator response (Spinning Reserve, (Energy (peak shaving and Regulation
Ramping reserve) arbitrage) load levelling)
Bulgaria
✓ ✓ ✓ ✓ Area regulation
(ESO)
Croatia
✓ ✓ ✓ ✓ ✓ Area regulation
(HOPS)
Greece
✓
(IPTO)
Serbia Area regulation,
(EMS) ✓ ✓ ✓
Congestion relief
Bosnia and
Herzegovina ✓ ✓
(NOSBi)H
In reality, most of the regions lack regulation frameworks related to ESS, except in some of the countries
(Bosnia and Herzegovina, Bulgaria, Croatia and Serbia). The PSH in Bosnia and Herzegovina only provides
upward manual frequency restoration reserve (mFRR) besides power generation. In Serbia, PSH plants are
used to provide frequency restoration services in network operations.
The followings are detailed examples from ESO (Bulgaria) and HOPS (Croatia) about specific services that can
be provided by PSH:
Bulgaria (ESO): PSH plants offer their capacities as important operating reserves in Bulgarian power network.
These active reserves include frequency restoration reserve (FRR), frequency containment reserve (FCR) and
replacement reserve (RR). These types differ according to the principle of activation and their activation
response. FCR (must be available within 30 seconds) and aFRR (must be available within 5 min) are
automatically called off from regulable power stations. The mFRR, which needs to be available within 5 - 15
minutes, is requested from suppliers by manual activation (individual activation sent to the supplier,
telephone dispatch, e-mail) [9]. Activations of FCR and aFRR are realized automatically and locally, according
to frequency deviations or Automatic Generation Control (AGC) signals. The active power will be released
through FRR instead of FCR if the frequency deviation lasts longer than 30 seconds. Replacement reserve (RR)
means the active power reserves available to restore the required level of FCR and FRR for additional future
use.
The PSHs in Bulgaria are used for FCR, mFRR (manual Frequency Restoration Reserve) and aFRR (automatic
Frequency Restoration Reserve) but only in generation modes. The response can be extracted in tens of
seconds and sustains for 15 minutes at most. For the RR (include RES fluctuation compensation reserve), the
storage needs to be operated in both generator and pump modes, and the response can be released in 5 –
15 minutes, while only the generation mode is required in mFRR and aFRR (upward FRR). In addition, the PSH
also provides voltage regulation (reactive power compensation). The FCR is released through primary
frequency response approximately once a year, while aFRR and mFRR are released when connected to AGC.
The reserve capacities as well as the voltage regulation provided by PSH are mandatory in the networks.

Croatia (HOPS): The storage assets in the network of Croatia are used for mFRR, the energy of which is
released for load following of unpredicted RES ramps beyond daily loads, as well as voltage regulation and
energy arbitrage. The full capacities of the storage (generator mode +276 MW and pump mode -240 MW)
are used for these applications, except the only generator (-120MW), which can be used for ramping reserve
in pump mode. The response of the storage facility can be extracted within 15 minutes, while the length of
the response is up to 4 hours. A minimum storage capacity of 1 MW is required to provide these ancillary
services in the market.
c) Market participation
Most of the PSHs are used for energy trading, which provides their capacities in the DAM and IDM. In these
markets, the price of energy delivery is determined by the supplies and offers in the energy market. For
example, the PSHs in Greece offers their capacities in the day-ahead market with the bidding price that
cannot be less than a theoretical “variable cost”, which is calculated by the market operator every day for
the following day. The variable cost is determined by an algorithm taking the water level, the “replacement
cost” of fossil fuel and the time of the year into account. For example, the variable cost is nearly 0 when the
water level is above the highest limit, while such cost is equal to the price cap (300 Euro/MWh) when the
water is below the lowest permitted level. For levels of water between these two extreme situations, variable
cost of the plant is somewhere between 0 and 300 Euro/MWh. When the pump storage plants want to
withdraw power from the system for pumping, the plant behaves as a supplier and declares the capacity
needed and desired price.
In Bulgaria, the storage can be traded in DAM and IDM. The price depends on the owner’s decision and
market equilibrium result. The untraded storage capacity is used as reserve and traded in balancing market.
Providing balancing energy is rewarded according to the base load price of the Independent Bulgarian Energy
Exchange (IBEX) day-ahead market. The price for balancing energy, released through frequency response, is
the same for all types of reserves provided by storage.
In Croatia, storage power plants (with special treatment in law) can buy and sell energy (energy market out
of TSO) on energy wholesale market (power exchange or bilateral), as a market party. As a pump storage
plant, individually or as a part of larger portfolio could provide reserve power as well as balancing energy (on
request of TSO). So, the capacity of storage should be integrated in existing market structure. Reserve power
is contracted on a yearly basis with a price determined separately per ancillary service (aFRR, mFRR, voltage,
black start, Island operations). The secondary reserve is paid by TSO, while primary reserve is obligatory on
a level which is determined on a yearly basis for the entire synchronous area (+/- 3000 MW in a range +/-
200 mHZ). The obligatory participations in primary reserve and AGC also apply to other large HPP. Frequency
response is not paid additionally. Balancing energy is accounted and settled based on contracted energy price
(depends on power exchange price multiplied by some factor). Currently prices are defined by methodologies
but HOPS is working in order to open a market.
d) Distributed storage
The value of energy storage depends on its location in the power network. As given in [10], the economic
values increase as approaches the edge of the grid and customer loads with considerable volatility, where
economic benefits accrue to both utilities and end users. Compared to bulk energy storage, distributed
storage has proven its value for providing more flexibility to the grid. Current practices include to install
distributed storage with renewables to support their integration. However, the capability of distributed
storage is not limited to offer synergy with renewable generations, the functions in supporting the grids
should be emphasized.
According to the questionnaire, distributed storage technologies are not widely established in the regions
and still under development. Most of the TSOs have experience operating large PSH but lack experience for
small and distributed storage assets. In the power network of Croatia, only 0.0025MW residential storage
devices are connected at the 400V level. According to the Greek distribution operator (HEDNO), residential
battery energy storage systems will be available in the distribution network at 400V level on the Kythons

Island. There are total five storage systems with the capacity of 0.0025MW/0.006MWh for each unit.
However, the applications of these distributed storages are quite limited. Currently, they are only allowed to
be installed from prosumers, who produce and consume electricity in the meanwhile and get net metering
contracts as well as in cases of hybrid power stations, which are operated at non-interconnected Islands.
In additional to the battery storage, electric vehicles (EV) are regarded as another type of distributed storages
that exists in the regional networks. The market share of EVs increased significantly in recent years, as EVs
are deemed as an alternative form of transportation based on fossil fuel, and pushed by governments around
the world (e.g. Croatia: 1.5 – 7.5 MW, Romania: 2811 units including 514 electric vehicles and 2297 hybrid
vehicles), but no services can be provided by these electric vehicles yet.
e) Envisaged storage installation

A few TSOs plan to expand the capacities of PSH plants in the near future. Plans regarding distributed storage
installation are not concrete from most TSOs’ perspectives. The concept of aggregations for small-scale
storage devices are still being demonstrated by ongoing projects in national levels, with the aims of
investigating potentials and attracting investment. In Greece, the Ministry of Energy published the medium-
term National Energy Plan that expects additional 700 MW of storage plants to be installed until 2030, but
the plan does not provide any estimation on the future storage mix. In countries lacking large-scale storage
facilities, the requirements on PSH installation seems to be urgent: In Romania, there is an ongoing project
for building the PSH plant Tarnita-Lapustesti, with 1000 MW installed capacity, and additional storage
capacities are also planned to introduce in two wind power plants [8]; Macedonia also envisaged 333 MW
PSH installation in their networks.
Although Serbia has a relatively small share of renewable sources with still unclear plans for future expansion,
Public Enterprise Electric Power Industry of Serbia (PE EPS) in its long-term plans has the construction of PSH
Bistrica in addition to the existing PSH Bajina Bašta. The reason for the construction of this PSH lays in the
fact that significant construction of intermittent renewable sources is foreseen in the region and Serbia is
centrally positioned with strong interconnections to the neighbouring countries. Considering the fact that in
Europe there is a tendency for the formation of a single electricity market and that there is a growing
correlation in electricity prices on markets across Europe, for assessing the potential of PSH is perhaps even
more important to consider investment plans for the development of production capacities at the regional
level (and even Europe) than inside the country. With an increasing share of intermittent production in the
energy mix, seasonal variations in the price of electricity are increasing, and there is a growing need for large
storage capacities. Based on the existing technical documentation, energy storage capacity of PSH Bistrica
will be approx. 60 GWh and with installed power680MW (4x170MW) It is worth mentioning, that upstream
from the potential PSH Bistrica exists two power plants Uvac and Kokin Brod with huge energy storages,
approx. about 300GWh at head of PSH Bistrica. Such plant could play significant role in covering peak loads
and providing balancing and ancillary services to the Serbian and other regional power systems.
Among the distributed storage technologies, electrical vehicles show increased potential in the future energy
mix. According to the statistics provided by Romania, the share of electric and hybrid cars in total new car
sales reached 2.2% in 2017, reaching 2811 units, which is an increase of 136.7% compared to the previous
year, and there are already approximately 150 charging stations in Romania.
Detailed information regarding the envisaged storage capacities in the region are given in
Table 4.
Table 4. Envisaged storage capacities in the region

System PSH EV Battery
Operator
ESO Expansion of the lower reservoir
HOPS 1140 MW/-991 MW 105-525 MW

HEDNO 66 MW
MEPSO 333 MW 37 – 81 MW 50 – 100 MW
TRANS 1265 MW
EMS 625 MW
It is noted that most of these counties have plans to expand the capacities of PSH to participate in the related
services in the existing power networks. Considering the expected increase of EVs due to the demands on
sustainable transportation, additional attentions should be paid since charging a large amount of EVs might
coincide with the duration of peak demands at nights. As a result, the distribution network might face security
issues in terms of voltage levels and transformer ratings [11]. Additional measures are required to achieve
effective EV charging, such as shifting their charging period to midnight.
By contrast, the expected installation of other types of distributed storage (e.g. batteries) is relatively limited,
and the services they can provide to the networks are still unclear. Figure 6 shows the TSO’s ideas about the
desired services of bulk and distributed storages in the future.
Preferred services from ESS

Transmission Congestion Frequency Response
Relief 7%
Area Regulation
19%
11%
Voltage Regulation
4%
Renewable Capacity
DSM
Firming
15%
Others 4%
12%
Cross-boder Trading
4%
Variation Mitigation Peak Shaving

18% 18%
Figure 6. Preferred services from storage technologies for TSOs
f) Policy constraints
In spite of the rapid integration of renewable power generations, the development of storage technologies
is still lagging, especially for distributed storage at distribution levels. Most of the system operators agree
that the lack of regulation frameworks is a main obstacle preventing large-scale storage applications. In most
counties, the PSH plants are mainly used in energy trading. For example, in Greek network the PSH units
cannot be used to storage the excess of RES production due to the lack of regulation frameworks. The storage
facilities can only participate in the market as a supplier (charging mode) or a producer (discharging mode)
for energy trading purposes. In Croatia and Bulgaria, PSH units can provide ancillary services in terms of active
power reserves, frequency and voltage regulations. Every transmission network user with power rating above
1 MW can participate in ancillary service provision according to HOPS. The storage can participate in
balancing market in Bulgaria, but TSOs and DSOs are not allowed to own storage assets. The connection rules
related to storage are to be changed in near future in Bulgaria and Romania. In Greece, storage is mentioned
only as part of hybrid RES plants in non-connected Islands [8].
One of the issues is that regulation doesn’t recognize storage as transmission network assets, and there is no
clear definition of their rights and obligations as market participants. Without such a framework, centralized
or distributed storage cannot participate in balancing markets or provide ancillary services to the grids. Even

with slight modifications for legislation that enables storages’ participation in the ancillary service market, as
argued by NOSBiH, there are still no clear results indicating the economic strength of such installation
considering the high cost of storage devices itself. Perhaps the integration of renewable energy sources
further complicates the evaluations on their benefits [2]. The difficulty of justifying the risk of such
investment limits and postpones most projects related to distributed storage.
However, ESO, NOSBiH and HOPS propose solutions enabling participation of distributed storage in grid
operations. Technical requirements need to be identified first and incorporate into the national codes.
Infrastructures need to be established to achieve effective controls and communications among storage
devices. Distributed storage assets, properly aggregated in clusters with minimum capacity of 5 MW
(proposed by NOSBiH), can be tied to the current markets, biding through TSO directly or TSO-DSO
communication. Special policy treatments might be given to incentive the applications of distributed storage.
Also, appropriate rules need to be designed by storage aggregators, in order to split profits and penalties
among its members.

3 AN OVERVIEW OF EXISTING AVAILABILITY AND USE OF DISTRIBUTED STORAGE

TECHNOLOGIES AT PAN EUROPEAN LEVEL [12]
There are several distributed energy storage technologies at regional and pan European level for the
provision of different types of services to transmission and distribution networks, specifically for the
improvement of cross-border transfers, as well as voltage and frequency regulation, such as hydrogen fuel
cells, pumped hydro, compressed air, batteries, flywheels, supercapacitors and superconductors. From a
broader view, these technologies can be separated into electrochemical, thermal, mechanical, chemical,
electromagnetic and hybrid storage technologies. Compared to other storage technologies aiming at
different purposes apart from grid services, each system features different characteristics, advantages and
disadvantages and corresponds to a certain maturity level as illustrated in Figure 7:
Figure 7. Maturity of energy storage technologies [13]

PSH is the most mature technology and has been widely deployed for decades. Thermal storage systems as
well as CAES systems are already deployed and commercialised as well, but the total installed capacities are
relatively low due to low efficiencies, geographical constraints and specific requirements concerning the
storage medium and economics.
Decentralised small and medium-scale energy storage solutions are gaining importance, where different
electrochemical and thermal energy storage systems, such as residential hot water heaters with storage, play
a major role reducing peak demand to the grid.
Regarding electrochemical battery Lithium-based battery storage systems are one of the most promising
technologies. Especially in small-scale residential storage systems, Lithium-Ion technology is mostly deployed
today, although Lead-Acid was the dominant technology a couple of years ago. The reason for that is the
advancement of Lithium-Ion technology in recent years which included the energy density increase and cost
decrease by 50%. In addition, Lithium-based battery storage systems feature an excellent cycle stability of
up to 15,000 cycles. Several studies expect that the cost of Lithium-based battery storage systems will further
decrease and will be partly superior to other technologies. Not only the price but also the flexibility of battery
storage systems is competitive since they can be deployed in different grid levels and thus cover a wide range
of applications.
Electromagnetic storage systems such as Supercapacitors (or Ultracapacitors) and SMES as well as
mechanical flywheel storage systems are designed for short discharge times and thus are not suited for
services which require a minimum of storage capacity. Moreover, the self-discharge rate of such systems is
rather high. However, when combined with other storage technologies in the so-called hybrid storage system
concept, high-performance short-term storage systems can provide peak power leading to an optimized
operational profile and overall lifetime. The following table illustrates a summary of existing energy storage
technologies and their most important characteristics:

Table 5. Overview of the characteristics of energy storage systems [14]

Technology Energy density Capacity Power Efficiency Costs Cycles/Lifetime
Electroche Lead Acid ~30Wh/kg 0.25-50MWh <100MW 85-90% ~380€/kWh 1500
mical
Lithium Ion 90-270Wh/kg 0.25-100MWh 0-100MW 85-95% 200-400€/kWh Up to 15000
batteries
NaS 103-116Wh/kg <300MWh 50kW-8MW >85% 300-500$/kWh 2500
Sodium Sulphide
NiCd 40-60Wh/kg <85% 563-1120 €/kWh 3000
Nickel Cadmium
NiMH Nickel-Metal 55-100Wh/kg 70-85% ~250$/kWh 1000
Hydride
Vanadium Redox-Flow ~25Wh/kg <250MWh 30kW-3MW ~85% 500-700€/kWh 10000-16000
Mechanical PSH 0.5-1.5Wh/kg 100-5,000MW 65-87% 5-100$/kWh 40-60 years
Pumped Hydroelectric
Energy Storage
CAES 30-60Wh/kg 5-300MW 50-89% 2-50$/kWh 20-60 years
compressed air energy
storage
FES 3.3-25kWh 90-95% 250-350€/kWh 20000+
Flywheel Energy Storage
GES 20000MWh 40-3000MW 75-86% 1,000€/kWh 15000
Gravity Energy Storage
LAES 97Wh/kg 1000MWh 50-70% 1,000€/kWh 22000
Liquid Air Energy Storage
Chemical - HFC 0.1-1000kW 30-70%
Fuel cells
Hydrogen fuel cells
DMFC 100-1000kW 20-30% 1000$/kWh
Direct-methanol fuel
cells
DEFC 100-1000kW 20-30% 1000$/kWh
Direct-ethanol fuel cells
MCFC 100-300kW 50-60% 4 years
Molten carbonate fuel
cells
SOFC 0.5-100kW 50-60%
Solid oxide fuel cell
Electrical Supercapacitor 8kWh 96% 350€/kWh 1000000
SMES 20MWh >95% 1000-10000€/kWh 100.000+
Superconducting
Magnetic Energy Storage
3.1 CLASSIFICATION AND TYPES OF STORAGE SYSTEMS

Each storage category features several sub-technologies, which again differ in the used material
compositions like in the case of electrochemical storage systems or in the functional principle, e.g. the
pumping of water into a reservoir or the compression of air. Besides the functional principle the storage
duration is another important characteristic. Some technologies are used for short-term storage (minutes to
hours) and some are used for long-term storage (days or even weeks). Further important characteristics
include the efficiency, the lifetime and the costs.

a) Electrochemical energy storage systems

The electrochemical energy storage system is a technology where the chemical energy contained in the active
material is converted directly into electrical energy. The chasing of the electrochemical energy storage
system is called battery and consists of two or more electrochemical cells.
Functional principle
The functional principle of an electrochemical storage system is based on the conversion of chemical energy
into electrical energy. Any chemical reaction, which can liberate an electron and so create an electrical
current, can theoretically be used in that kind of technology. The association of a cathode and an anode
represents one cell of a battery. Each cell has a fixed voltage and capacity (depending on the weight of the
cell). If the cells are associated in parallel, then the capacity of the overall battery is doubled. On the other
hand, if two cells are put in series, then the voltage of the overall battery is doubled.
Depending on the previous behaviour of the battery, it is possible to set the overall voltage and overall
capacity of the battery. Each couple of material has specific properties on voltage and capacity which will
define the size and weight of the battery. Different examples are shown on Table 6. The number of
dischargeable cycles is also specific to each material composition and will define the life duration of the
battery.
Table 6. Values of different battery cells [16]

Average specific capacity
Elements Cell voltage (V) Lifespan (cycles)
(Wh/kg)
Ni-Cd 1.2 40-55 1500
Ni-MH 1.2 70-100 700
Ni-Zn 1.65 70-80 1000
Li-ion 3.6 90-400 500-700
Li-Po 3.75 100-200 300-500
Characteristics and constraints

On the market there are several types of battery storage systems which feature different types of batteries
and converters inside. In order to charge battery storage systems, the energy from generators such as PV has
to be transferred to the battery. With the transfer of the energy along the path PV to battery (PV2Bat)
conversion losses arise. By analysing the efficiency of different battery storage systems, larger differences
can be observed. It’s also observable that the efficiency depends on the nominal power. Whereas the best
system features an efficiency of 92-93% over the full power range, other systems reach efficiencies even
below 85% at certain points [17]. For the operation of a battery storage system the efficiency curve is an
important characteristic. The operation strategy should be constructed in a way that the battery storage
system is operated in the most efficient operation point as often as possible.
In Figure 8 the overall efficiency of different electrochemical storage systems during a long period are
illustrated against years. The worst one has in the end an efficiency of 77% and the best one 96%. This is a
huge span. The manufacturer of the storage systems aren´t known but the study says that Lithium Ion
batteries have a higher efficiency than Lead Acid batteries. But there are also differences within the Lithium
Ion cell technology [17].

Figure 8 Efficiency of different battery storage systems measured over a long-term period [17]
Looking at the advantages and disadvantages of electrochemical storage technology there are differences
among the diverse types as we can see in Table 3. The table consists of the most relevant types of battery
systems.
Table 7. Technologies comparative assessment [19]

Electrochemical Storage Advantages Constraints
Technology
Lead Acid Power density for stationary applications Limited cycle life
Complex cell management is not necessary Need a ventilation system
Can be implemented in large scale storage Charging and discharging ability are not symmetrical
Vanadium Redox- Flow Quick responses Low electrolyte stability and solubility leading to low quality of
energy density
Discharge duration time up to 24+ hours
Relatively high operating cost
High efficiencies (up to 85%)
Lithium Ion High cycle efficiencies Have an inherit risk of fire, heat generation and thermal
runaway
Small dimension, light weight
Need a voltage balance
Good response time
Need a proper thermal management
NaS Highly energy efficient High annual operating cost
Non-toxic and high materials recyclability The chemical reactions require a temperature of 574–624 K to
ensure the electrodes are in liquid states
Higher rated capacity than other types of batteries
Suitable only for large-scale stationary applications
Metal Air Can meet the requirements of the whole range of Shape of the electrode changes during charge/discharge cycles
applications
NiCd High robust reliabilities Toxic heavy metals
Low maintenance requirements The maximum capacity can be dramatically decreased if the
battery is repeatedly recharged after being only partially
Performing well in a large low-temperature range
discharged
(233-253K)
The Lithium Ion technology has the highest energy density and a good efficiency. That’s why it is the preferred
technology in stationary and automotive applications. The efficiency of a Lead Acid battery is almost as high
as Lithium Ion; however, the energy density is the lowest and the cycle stability is limited. Therefore, Lead
Acid is replaced by the newer technologies such as Lithium Ion in many applications. NaS cells need very high
temperatures to operate, so they have high capital costs which make it less attractive for operators. There
are also NiCd batteries which feature a comparable performance to Lead Acid but at a much higher price.
The Vanadium Redox-Flow batteries have a very high amount of charging and discharging cycles, making

them interesting for long-term applications. Finally, the NiMH chemistry has better energy densities than
NiCd and there is no need for cadmium.
b) Thermal storage (power to heat)

There are three types of thermal storage systems:
• Sensible heat storage.
• Thermochemical heat storage.
• Latent heat storage.
Thermal storage is a technology that stores thermal energy for later use. These systems consist of three basic
parts, which are the storage material, the heat exchanger and the control system [20].
Functional principle
Thermal energy can be stored by heating or cooling a storage medium. The functional principle of the
technology can be grouped into three distinct categories [22][23][24][25][26]:
• Sensible heat storage: energy is stored in the form of sensible heat based on the specific heat of the
storage medium, which may be a liquid, such as water or thermo-oil, or a solid, like concrete or the
ground. The energy is stored and released by raising and lowering the temperature of the medium,
which is usually kept in storage tanks with high thermal insulation. The specific heat capacity and the
mass of the storage medium define the capacity of the system, while the tank insulation determines
the thermal losses and the storage period. This is the most mature and commonly used technology
and water is the most commercial heat storage medium used in a number of residential and industrial
applications. The use of solar energy and heat pumps are more and more employed, in order to reach
higher efficiencies. In large-scale applications, pit storage and underground storage of sensible heat,
in both liquid and solid media, is commonly used.
• Latent heat storage: energy is exchanged and stored through a phase change of the storage medium
material, taking advantage of the latent heat absorbed or released at constant temperature during
the process. Given that there is no change of temperature, latent heat is also called “hidden” heat
and can enable a target-oriented discharging temperature. The phase change materials can offer a
high storage capacity and are usually selected depending on the temperature of the application.
Currently, the solid-liquid phase change is most commonly used with melting processes used to store
heat and solidification used to release heat. The phase change material (PCM) is usually different
from the heat transfer fluid, with either the PCM encapsulated in containers with the heat transfer
fluid flowing over them or by using a heat exchanger inserted into a store full of PCM material. The
ice cooler is one of the most commercial applications to keep cool during hot days, and other popular
large-scale applications use molten salts as a thermal storage medium for concentrated solar power
(CSP) plants.
• Thermochemical heat storage: reversible thermochemical reactions are used to store large
quantities of heat in small volumes, by accumulating and discharging energy on demand using
different chemical reactants. In chemical reaction processes, heat is applied to a material and it
breaks down into two components, which are then stored separately and can recombine and release
heat when brought back together. In sorption processes, the thermal energy is stored either through
adsorption (physical bonding) or through absorption (uptake/dissolution of a material). These
systems use a combination of two different materials, one being the adsorbent as the solid material
and the other being the adsorbate as the gaseous material. Typical applications involve adsorption
of water vapour to silica gel or zeolites.
Adsorption energy storage is becoming particularly important for cooling, air conditioning and in combination
with heat pumps or CHP plants. Other interesting fields of application include waste heat utilization and
hydrogen storage combined with thermal energy storage in order to buffer the energy from renewable

energy sources and produce electricity on demand. However, thermochemical storage systems are still the
least developed, requiring complex reactor designs to achieve the desired operational performance.
Table 4 shows the advantages and constraints of thermal storage systems. While there are residential
thermal storage systems in existence throughout the world, there is not a high level of commercialization.
On the other hand, the latent heat storage is not very common yet as they are still in a research and
development phase.
Table 8. Technologies comparative assessment [20] [14]

Thermal Storage Advantages Constraints
Sensible heat storage The storage material can be technically any material. Water Gases are not commonly used as their volume changes
is a common due to low cost significantly with temperature
The thermal conductivity of the material does not limit its The amount of heat that can be stored in a material
heat storage capability depends on the amount of material
Stratifying devices can increase the thermal efficiency of the The amount of sensible heat that can be stored is limited
heating system by the phase change temperature
Latent heat storage There can be liquid-solid, liquid-gas, and solid-solid phase Need of special materials which are known as Phase
transitions Change Materials (PCM)
There are several materials that can be used as PCMs Phase change temperatures must be above the heating
load temperature and below the heat source
temperature
Thermochemical heat There is no thermal loss during storage as products can be Technology is still mainly in the research and
storage stored at ambient temperature development phase
The energy density of the storage materials are 5 to 10 times
higher than latent and sensible heat storage systems
c) Other storage technologies

Other energy storage technologies to consider are: mechanical, chemical and electromagnetic storage.
Any energy storage technology comprises several steps to achieve the characteristics appropriate for the
discharge into the grid. There is a wealth of information about operation principles, technical details and
energetic conversions levels of each technology in the scientific literature [27][28][29][30].
Mechanical storage
This energy storage system is based on electromechanical storage systems that convert electrical energy into
energy forms that are easier to store. The following technologies are included: flywheels, hydropower,
gravitational, compressed air, liquid piston and liquid air.
Functional principles
Flywheel Energy Storage (FES) [31]: The storage principle is based on a rotating element capable to store
kinetic energy. The flywheel continues its movement by inertia when ceases the torque that moves it due to
almost null friction that is achieved with the magnetic bearings. The amount of energy that can be stored
depends on its mass, its geometry and, above all, the speed at which it can rotate.
PSH [31]: This technology stores energy in the form of gravitational potential energy from water, pumped
from a lower lift tank to a higher lift. This is the most mature and widely used technology.
Gravity Energy Storage (GES) [31]: This technology is based on energy charge/discharge by raising/lowering
a large solid mass with or without the support of fluids.
CAES [31]: This technology compresses the air and stores it in a tank or in underground conduits and cavities.
To recover the stored energy the gas expands in a turbine.

Liquid- Piston Energy Storage (LPES) [31]: It consists of an adaptation of CAES and it is also known as ALP-
CAES. In this case, the compression is carried out with the support of a liquid which is used to improve the
heat storage associated with the compression, keeping the liquid in adiabatic conditions.
Liquid Air Energy Storage (LAES) [32]: LAES is sometimes referred to as cryogenic energy storage (CES). The
word "cryogenic" refers to the production of very low temperatures. It is a very recent technology that uses
liquid air to create a reserve of energy that can be stored on a large scale for an extended period of time [33].
LAES is based on liquefaction and air separation to produce nitrogen or oxygen for industrial use. The liquid
air is stored in isolated tanks without any additional energy expense. When evaporated and gasified again,
the increase in pressure and volume is used to drive turbines that inject power to the grid.
The technology readiness level (TRL) for the case of mechanical storage is variable, since it depends on the
technology used. On one hand, FES’ TRL would be 9 [34] because it is a technology that has been tested
successfully in real environment and it is commercially available. On the other hand, GES is in the concept
stage and there are small scale prototypes with a very low TRL.
Table 9. Technologies comparative assessment

Mechanical Storage Advantages Constraints
Technology
FES Very environment friendly system Friction losses affect long-term energy
storage efficiency [31]
Fast response speed, limited discharge time and no degradation with the
number of cycles High costs [35]
Low maintenance cost, high cycle life, high efficiency [31]
GES Feasibility of installation at any location (no reservoir is required unlike Large gap in dimensions or large
reversible hydroelectric storage) masses are required to store a
considerable energy amount
Low maintenance
High efficiency
LPES Unlimited cycle availability Low energy density
Low maintenance Low efficiency
Overload not possible due to relief valves
LAES It has no geographical restrictions Low efficiency (40 – 70%)
Low cost
Duty life + 25 years
Scalable at 100 MWs / GWhs
Ready-made components available from a large value chain
No usage of limited or toxic materials
PSH Mature technology Geographical constraints
High energy content Comparable low efficiency
High lifetime Environmental impact
As the main advantage of mechanical storage, it is possible to emphasize the life time of the various
technologies, which is higher than other storage systems, as it is determined by the life of mechanical
components. A comparative assessment of mechanical storage technologies is presented in Table 5.
Considering FES characteristic parameters, these indicate high efficiency (85-95%) performance [27] [31]
[34]. FES supports several hundred thousand charging/discharging full cycles [27] together with the absence
of degradation. The size and storage capability relation is around 30-600 W/Kg and 10-80 Wh/Kg [36]. It
should be noted that FES main applications are high power (5 to 10 times that of a battery), quick response
(around 4 ms) and short duration (to provide a 15 seconds backup time or to act as a bridge to connect

another source) [27]. FES need low maintenance, have a short recharge time, allow full discharge, have high
efficiency and losses no more than 2-5% nominal power per hour operating in standby [37][37]. FES has a
high capital cost (1000-5000 €/kWh) [21] [39], but very low cost per cycle 0.033-0.25 €/kWh.
GES systems have not reached fully commercial product phase in applications to electrical grids yet. Although
there are several started projects and finalized prototypes, this technology is not deployed on a large scale
yet. The power managed by the GES in the different projects is diverse, ranging from 11 kW to around 3 GW
[40][41][42][42]. According to the efficiency parameter, this also varies according to the analysed prototype.
It is a technology that does not cause great environmental impact due to contamination, although it requires
civil works and this can lead into environment modification. Once installed it is a clean way to store energy
[40].
Otherwise, LAES systems are based on a recent technology that combines gas and electric industry mature
components. This technology can offer large-scale storage without geographic restrictions. Power ranges
from 5 MW / 20 MWh to 100MW / 1000MWh. In relation to efficiency features, lower values are indicated
than for inertial and gravitational flywheel technologies, around 70%. With regard to the response time, it is
slower than the previous ones (less than 20 minutes if the liquefier is cold and around 2 hours or more if the
liquefier has not been recently operated).
d) Chemical storage
It is based on energy stored by chemical reagents. When the energy is extracted from the battery, this energy
changes from chemistry to electrical directly by electron flow through a medium permeable to the movement
of these. The following technologies are included: Hydrogen fuel cells (HFC), Direct-methanol fuel cells
(DMFC), Molten carbonate fuel cells (MCFC), Solid oxide fuel cell (SOFC) and Direct-ethanol fuel cells (DEFC).
The fuel cells - at grid level - are the typical typology to the chemical storage systems. Fuel cells are the
elements in which the electrochemical fuel is converted into electrical energy without the need of
combustion. Hydrogen is not the only fuel that can be used. Methanol, ethanol or methane can also be used
and are afterwards converted to hydrogen and carbon monoxide.
They are formed by two electrodes separated by an electrolyte, which allows ions passage but not electrons.
At the negative electrode (anode), the fuel oxidation occurs while at the positive (cathode) the oxygen
reduction of the air takes place. The fuel cells main feature is that it needs to be fed by an external tank to
generate energy, such as it occurs in combustion engines, and the products resulting from the reaction exit
outwardly [29].
All these technologies can be used to produce electricity, but only hydrogen batteries are reversible. This
means that hydrogen batteries can generate their own fuel using grid power, together with the product
resulting from the reactions (water). In addition, SOFCs and MCFCs have a high operational temperature,
meaning that they need an auxiliary heating system. These heating systems can be used as cogeneration
systems. However, the time required to reach operational temperatures is high, but the technology has not
matured yet.
As mentioned before, the advantage of hydrogen is that it can be produced using electricity by the process
of water electrolysis. These batteries are based on their reversibility to obtain electrical energy.
Regarding the environment, these technologies have a great advantage over other storage systems since the
resulting products are water or oxygen (if used in reversible mode). However, it must be warned that there
is great risk when manipulating gases (hydrogen risks are noted as such in Seveso III EU directive) [44].
The response time is high in comparison to other storage technologies. This characteristic is a barrier of
chemical storage technologies functionality as distribution system stabilizer. Currently, one disadvantage of
chemical storage systems is the relative low efficiency for electrical power conversion. The cell membranes

have high sensitivity to contaminated hydrogen, thus it is necessary to feed the fuel cells with pure hydrogen
and therefore, operational costs increase because it is still more expensive to convert from natural gas to
hydrogen than from electrical energy to hydrogen.
Table 10. Fuel cell comparison

Operating
Fuel cells Fuel Efficiency (%) Power (kW)
temperature (°C)
HFC 50-100 Hydrogen 30-70 0.1-1000
DMFC 90-120 Methanol 20-30 100-1000
DEFC 90-120 Ethanol 20-30 100-1000
Hydrogen
MCFC 650-700 50-60 100-300
H2 + CO
Natural Gas
SOFC 800-1000 Hydrogen 50-60 0.5-100
H2 + CO
The outstanding parameter of this technology is the high energy density which is proportional to the level of
fuel compression. Regarding power levels, the parameters according to the type of fuel cell are shown in
Table 10 [29].
There are commercial hydrogen battery products but it is still considered that reversible hydrogen batteries
technology is not fully mature. High power application projects are currently on development stage. For these
reasons a TRL 7 can be attributed [34]. This TRL is a disadvantage compared to other more proven
technologies. However, it is one of the most promising technologies in the long term.
As economic note about fuel cell, it is important to differentiate storage systems for electric energy
conversion from storage systems for gas injected distribution. In the latter case, it obtains an assessment on
the cost per unit of installed power between 300 €/kW and 1,500 €/kW [45][46].
By comparing most common storage technologies features (cost-effectiveness, quality, UPS and options for
regulation and load management), chemical storage technology would be interesting for the following
applications:
• Fuel cell for power quality applications about 15 seconds or greater times.
• Large hydrogen systems with CAES for low-cost load management.
• Fuel cells or hydrogen engines by direct supply.
• For long life cycles, hydrogen batteries race against battery systems for discharge times greater
than 2 hours.
• Reversible fuel cells operation seems reasonable at discharge times of up to 4 hours.
Cost per unit of installed energy is low against other energy storage systems, with the only exception of PSH
and CAES. The investment cost per installed capacity is less than 1,000 €/kWh [27].
e) Electromagnetic storage
There are mainly two technologies to be noted: Supercapacitors (or Ultracapacitors) and SMES.
Supercapacitors have an operating principle similar to traditional capacitors. Nevertheless, their capacity and
discharge current are much higher. The main difference compared to conventional capacitors is based on
two aspects:

• Energy is stored at the interface between a porous conductive electrode and a liquid electrolyte
ionic conductor.
• The surface is greatly increased due to the very high porosity of the electrode.
Supercapacitors consist of two metal electrodes which allow a potential to be applied across the cell. For this
reason they present two double-layers, one at each electrode/electrolyte interface. An ion-permeable
separator is placed between the electrodes in order to prevent electrical contact, but still allows ions from
the electrolyte to pass through. The electrodes are made with high effective surface materials, such as porous
carbon or carbon aerogel. Two principal technologies are used: aqueous (maximum voltage of 1.2 V and
nominal voltage of 0.9 V) and organic (voltage near 3 V but with a much higher series resistance) [47].
Supercapacitors are used for voltage drop compensation in weak networks, allowing a very intense peak
power. Efficiencies of around 90% can be achieved in the complete cycle of charging and discharging.
SMES technology is an electromagnetic storage system based on the fact that a current will continue to flow
in a superconductor even after the voltage across it has been removed. Energy is stored in the magnetic field
created by the flow of direct current in the coil wire. When current travels through a wire, energy is dissipated
as heat due to wire resistance. But if the wire consists of a superconducting material, zero resistance occurs.
Energy can be stored with practically no losses. In order to acquire superconductor state within a material, it
must be kept at a very low temperature. Therefore, material properties are extremely important as
temperature, magnetic field and current density are key factors in the design of SMES. The overall efficiency
of SMES is between 90% - 99%.
The structure of SMES system mainly consists of superconductive coil, cryostat system (cryogenic refrigerator
and a vacuum insulated vessel) and a power conversion system. To maintain the super-conductive state of
the inductive coil, it is immersed in liquid helium contained in a vacuum insulated cryostat. Typically, the
inductive coil is made of Niobium-titanium (NbTi) which has a critical temperature of around 9K and the
coolant will be liquid helium or super fluid helium.
The energy storage capacity of the SMES system can be increased by increasing the maximum current flowing
through the coil, and it further depends on coil’s operating temperature.
The SMES concept started with the idea of very large plants with long capacities of GWh that were intended
for diurnal load levelling. However, with the advancement of superconductor technology, notably the
increase in critical temperature of the superconducting transition, recent development has mostly been on
smaller scale applications.
The principal supercapacitor characteristic that makes it suitable for using as ESS is the possibility of fast
charge and discharge without loss of efficiency for thousands of cycles. This occurs because they store
electrical energy directly. They can save or release energy at a high speed, but have a limited capacity
compared to batteries. Supercapacitors can be recharged in a very short time and having a great facility to
supply high and frequent power demand peaks. Then, they are commonly used as a complement to battery
systems to reduce their total power density and to take advantage of the synergy of combining two
technologies. Isolated supercapacitor systems are still in a demonstration phase, but there are already a
variety of pilot experiences. Principal research lines are focused on the use of supercapacitors in hybrid
storage systems combined with fuel cells, SMES or electrochemical batteries, because these systems are
complementary. The degree of maturity of the technology (TRL) is valued as 8 in case of the combination of
supercapacitors with batteries.
Due to advances in technology and the increase in the energy storage capacity, these systems are beginning
to be considered for energy storage systems in renewable energy generation plants. Other scenarios where
the use of supercapacitor-based systems is beginning to be researched are: active power filters, power
quality improvement of distribution and transport systems, locomotives, battery substitution in electronic
devices (due to their large useful life), intermediate energy storage systems, and in whatever medium level

power application that requires an energy storage of high response time, low installation and maintenance
costs, and small energy storage capacity.
SMES are very well suited to high power short duration applications due to its very high cycling capacity and
high efficiency over short time periods. SMES technology can be applied when large powers have to be
compensated in response times of the order of seconds or milliseconds. SMES are used in many voltage
stability and power quality applications. As SMES store electrical current, the only conversion involved in the
process is the conversion from AC to DC, so that efficiencies are very high. SMES can switch from full discharge
to full charge very quickly and it has negligible deterioration due to cycling.
On-site SMES are suitable to mitigate the negative impacts of renewable energy in power quality related
issues, especially with power converters – needed for solar photovoltaic and some wind farms – wind power
oscillations and flicker.
SMES exhibits a very high energy storage efficiency (typically >97%) and a rapid response (within a few
milliseconds) in comparison with other energy storage systems, but only for short periods of time. The energy
output of an SMES system is much less dependent on the discharge rate compared with batteries. It also has
a high cycle life and, as a result, is suitable for applications that require constant, full cycling and continuous
operation mode. These features make SMES suitable for solving voltage stability and power quality problems
in large industrial customers. The typical rating is 1-10 MW with a typical storage time of seconds. Research
is being conducted on larger SMES systems in the range of 10–100 MW and with a storage time of minutes.
The major problems confronting the implementation of SMES units are the high required cost of the cooling
units which use either liquid helium at 4.2 K or super-fluid helium at 1.8 K. In addition, environmental issues
associated with strong magnetic field should be considered. SMES has a high self-discharge rate due to the
energy expenditure of cooling via cryogenic liquid and mechanical stability problems. The TRL for the case of
electrical storage in particular with SMES technology is valued at 7.
Supercapacitors operational cost range is around 180-350 €/MWh and the investment cost range is 2200-
4200 €/kW. In the SMES case the operational cost is approximately 900 €/MWh and investment cost is
around 900 €/kW [46] [13]. In addition, according to [48], this technology offers advantages such as high-
power density, low carbon footprint and significantly lower costs than batteries for high power applications
and several seconds. As for SMES technology, it has a high initial cost [29] that reduces it to applications
where its energy density justifies the huge investment to be made.
Table 11. Characteristic parameters of electrical storage systems [27] [49]

Parameter Supercapacitors SMES
TRL 7-8 7
Power range 1 MW 40 MW
Capacity 8 kWh 20 MWh
Efficiency 96 % >95%
Lifespan 15 years +20 years
Charging / discharging cycles 1.000.000+ unlimited
Response speed inherent milliseconds very fast
33m2
Size
(Prototype in maritime container)
It is scalable based on number of batteries and
Scalability and Modularity Custom design
supercapacitors
small loss small loss
Energy system losses
(power electronics) (power electronics)

Technically, SMES has proved to be suitable for large powers for a short time as the potential density that
can be achieved is very high. It therefore becomes an excellent alternative for applications with large pulses
or sources of potential transients, especially current sources, UPS or FACTS for electrical networks. They are
used, for example, at the entrance of CERN particle accelerators.
Advantages of SMES technology include the following:
• Improves power factor for critical loads and provides additional power during power outages or
voltage drops.
• Improves load levels between renewable energy sources (wind, solar) and the transmission and
distribution network.
• Environmentally friendly compared to batteries, superconductivity does not require chemical
actions or toxic products.
• Improve transmission of line capacity and performance. SMES technology allows a wide dynamic
range, a cyclic capacity and an energy recovery rate close to 100%.
• High magnetic fields allow the use of storage capacities in long-term oriented SMES systems in a
compact system.
As mentioned, the great benefits provided by electromagnetic storage are achieved when combined with
other technologies, normally integrated into specific applications. The main goal today is to increase energy
density with better designs; there are projects on design phase [50] with that idea and orient the technology
to compensation of large pulsating loads.
f) Hybrid storage technologies

Digital economy growth implies an extended use of electronic equipment in all sectors. This requires not only
the powering of large demands but also a higher level of quality and reliability. On the other hand, integration
of intermittent renewable generation in power grids requires a smarter management.
Energy storage systems have a wide spectrum of functions. They must provide power quality, shaving of load
change, matching in distributed power systems, bulk energy storage, and end-user reliability. Storage devices
based on high-capacity batteries have a number of advantages, but it is also well known that batteries have
a number of unsolved problems. Then, Hybrid Energy Storage System (HESS) is proposed incorporating other
ESS in addition to batteries.
For one instance, imagine a distributed generation system with two or three different technologies of
renewables sources. The best solution to manage energy flows between these sources and the consumers is
to install an ESS able to store electricity (when it is not needed) and able to inject it (when system demands).
Each renewable energy source will have intrinsically characteristics power volume and generation times. For
this reason, ESS installed will depend on power, storage quantity, environmental conditions and lifetime. In
the end, ESS selection is the result of the calculation to obtain the lowest total ownership cost of each case.
Due to the diversity of performance demanded for energy storage in Smart Grids applications, it is difficult
to select optimal technology to achieve performance and cost efficiency.
There is no single ESS capable of accomplishing the large number of events that can occur in a distributed
generation system. So, the selected technology is usually the one that best suits to the most regular
operational conditions. The design is oversized to cover unexpected conditions. This factor increases the ESS
investment value.
If there is a large number of operational system conditions, hybrid energy storage systems (HESS) can be an
optimal solution when it is difficult to choose between one storage system or another. HESS implementation
is intended to provide a complete solution to the current requirements of the electricity market, i.e. support

the system to local supply disruptions, keep up reliability in the presence of increasingly use of distributed
energy resources (DER) and secure quality service requirements (Power Quality) which classical power
transmission and distribution (T&D) systems could not possible ensure.
Experimental studies demonstrate that HESS can successfully provide several functions (suppression of
voltage, current, and frequency disturbances in the grid; compensation of reactive power in the circuit;
uninterrupted power supply), in comparison with battery storage system without another ESS. The
researchers expect that HESS will prolong the lifetime of batteries and thus increase the lifetime and
reliability of the entire system. [51]
3.2 ADVANTAGES AND DISADVANTAGES OF DIFFERENT STORAGE TECHNOLOGIES

Energy storage is the capture of energy produced at one time for use at a later time. A device that stores
energy is sometimes called an accumulator or battery. Energy comes in multiple forms including radiation,
chemical, gravitational potential, electrical potential, electricity, elevated temperature, latent heat, and
kinetic. Energy storage involves converting energy from forms that are difficult to store to more conveniently
or economically storable forms. Bulk energy storage is currently dominated by hydroelectric dams, both
conventional and pumped. In addition, most new storage technologies are designed to contribute to low-
carbon electricity systems.
Numerous energy storage technologies are under development, with a wide range of characteristics that
make them suitable for different roles in the energy system, [52]. Many of these technologies are shown in
Table 12 [83].
Table 12. List of Energy Storage Technologies [83]
Details of current commercial, utility-scale energy storage technologies and their advantages and
disadvantages are given as follows:
a) Pumped hydropower storage

The technology of choice today is the pumped-storage power plant. In any excess power supply, water is
electrically pumped into a reservoir on a hill, so that it can be discharged when power demand is high to drive
a turbine in the valley downstream.
As part of PSH, pumped hydro plants, so far, are considered to be the only possible way to store energy in a
huge amount while maintaining a high efficiency and being economical as well and have about 98% share of
total global storage predominant in today’s grid. The first plants of this type were built in Switzerland and
Italy in the 1890s, making the concept over a hundred years old, [53].
The general formula for the power output is:

𝑃 =𝑄∙ℎ∙η∙g∙ρ
, including the factors of volume flow rate passing the turbines (Q) and the hydraulic efficiency of the turbine
(η) and the density of the water (ρ) (h: height, g~9,81m/sec2).
Pros and cons are shown in Table 13.
Table 13. Pumped hydropower storage: Pros and Cons

A/A Pros Cons
Mature technology, capable of storing huge amounts of
1 Few potential sites
energy
2 High overall efficiency (around 70–80%) Huge environmental impacts
Requires a significant huge water
3 Fast response time
source
4 Inexpensive way to store energy
As of early 2011, about 170 pumped-storage plants with a total capacity of almost 45 GW were operating in
Europe, Figure 9.
Figure 9 Locations of PSH plants on Europe [54]

Conventional PSH has dominated the grid-connected storage market and, given the opportunity, it remains
fully capable of defending its corner (high-power, day-ahead storage). It does not have that opportunity in
areas where the terrain is unsuitable, or where appropriate sites have already been developed, or where
projects have little chance of overcoming public opposition or approval difficulties. Conventional PSH cannot
participate in the rapidly growing distributed storage sector and its role will also be quite limited within any
future markets for week-ahead and strategic storage.

b) Compressed air energy storage

CAES is the term given to the technique of storing energy as the potential energy of a compressed gas. Usually
it refers to air pumped into large storage tanks or naturally occurring underground formations. While the
technique has historically been used to provide the grid with a variety of ancillary services, it is gaining
attention recently as a means of addressing the intermittency problems associated with wind turbine
electrical generators, [55], [56].
Today, there exist two CAES plants:
➢ CAES
➢ Advanced adiabatic compressed air energy storage (AA-CAES). “Adiabatic” here means additional use
of the compression heat to increase efficiency.
When the air is compressed, the heat is not released into the surroundings: most of it is captured in a heat
storage facility. During discharge, the heat storage device rereleases its energy into the compressed air, so
that no gas co-combustion to heat the compressed air is needed. The object is to make efficiencies of around
70% possible. What is more, the input of fossil fuels is avoided. Hence, this technology permits the CO2-
neutral provision of peak-load electricity from renewable energy. That this technology is doable has been
shown by the EU project.
As part of business case argument, we can state that:
✓ The Electric Power Research Institute (EPRI) calls CAES the only energy storage option, apart from
pumped hydro, which is available now and can store large amounts of energy and release it over long
periods of time—both of which are necessary if you are looking at energy storage for the electrical
grid.
Economics of large CAES (100–300 MW underground storage)
▪ Capital: $590–730 per kW
▪ Variable: $1–$2 per kWh
▪ Hours: 10
▪ Total cost: $600–750 per kW + (hours x $/kWh)
Benefits
Efficiency—CAES plants consume about 35% of the amount of premium fuel utilized by a
conventional combustion turbine (CT) and thus produce about 35% of the pollutants per kWh
generated from a CT.
Availability—CAES is the only technology available today, other than pumped hydro which can store
large amounts of energy and release them over long periods of time.
Potential large scale—Like pumped hydro, there are no technical limits to the implementation of
large projects.
Energy price variation—Playing the spread between on-peak and off-peak prices. The differential
between the two prices is the time value of energy storage. This is basically “buy low, sell high.” But
according to Smith BV, this does not necessarily get you there. And “there” is the ability for a CAES
project to generate revenue as a stand-alone project.
Capacity.
Ancillary services such as spinning reserves, upregulation, downregulation, black start, and
VAR support.
Integrating renewable energy sources.
Risks and Issues

❖ Limited geologic formations - unfortunately, the geologic formations necessary for compressed air
storage are relatively rare, meaning that it likely will never be a major contributor to the national
energy system. At large scale open to similar siting constraints as pumped hydro.
❖ Safety - mainly concerns with the catastrophic rupture of the tank.
❖ Cost - also subject to financing difficulties due to the nature of underground construction.
❖ Proof of concept - the effectiveness and economy of CAES have not yet been fully proved, especially
adiabatic storage.
❖ Reheat requirement - upon removal from storage, the air must be reheated prior to expansion in the
turbine to power a generator. The technology is not truly “clean” because it consumes about 35% of
the amount of premium fuel consumed by a conventional combustion turbine and thus produces
about 35% of the pollutants on a per kWh basis when compared to it.
CAES power plants are primarily suitable for balancing out short-term fluctuations in the power grid during
periods of peak demand in the megawatt range over a period of hours to a few days, Figure 10.
Figure 10. Storage layout diagram (© KBB Underground Technologies GmbH).
c) Batteries [70], [83]

Energy storage systems are comprised of three main modules:
➢ The direct current (DC) battery where energy is stored.
➢ The alternate current (AC) power conversion where the energy is converted from AC to DC.
➢ The control system that manages the operation of any energy storage system.
A battery is a device that produces electrical energy from chemical reactions. There are different kinds of
batteries with different chemicals. The idea behind them is that the two different chemicals within a battery
cell have different loads and are connected with a negative (cathode) and the other with a positive electrode
(anode). When connected to an appliance, the negative electrode supplies a current of electrons that flow
through the appliance and are accepted by the positive electrode.
Lead-Acid Batteries
A lead-acid battery is an electrochemical battery that uses lead and lead oxide for electrodes and sulfuric acid
for the electrolyte. Lead-acid batteries are the most commonly used in photovoltaic (PV) and other
alternative energy systems because their initial cost is lower and because they are readily available nearly
everywhere in the world.
Lead-acid battery can be found in three different types of design:
➢ Shallow Cycle Batteries

➢ Deep Cycle Batteries (they are a good choice for power systems).
➢ Sealed Deep Cycle Lead-Acid Batteries (they are well-suited for remote, unattended power systems).
Table 14. Lead-Acid Batteries: Pros and Cons

A/A Pros Cons
1 Easy and therefore cheap to produce Very heavy and bulky
Mature technology, more than 150 years of experience
2 Rather short lived
and development
Environmental concerns; although
Very high surge-to-weight-ratio, capable of delivering a
pretty safe, leads are a very toxic
3 high jolt of electricity at once, which is why they are so
element and exposure can cause
suitable as car starters
severe damage to people and animals
Corrosion caused by the chemical
4 Easily recyclable
reactions
Lithium-Ion Batteries
Just as the lead-acid and most other batteries, the lithium-ion battery by definition uses chemical reactions
to release electricity.
Because lithium is a very reactive compound and can burst into flames, safety measures have to be included,
such as onboard control chips to manage the temperature and prevent a complete discharge.
Table 15. Lithium-Ion Battery: Pros and Cons

A/A Pros Cons
Highest energy density in commercially available
1 Very expensive
batteries with huge potential
Provides higher voltage per cell (3.7 V compared to 2.0
2 Complete discharge destroys the cells
V for lead-acid)
Deteriorates even if unused (life cycle
3 Low energy loss; only about 5% per month
of about 5 years)
Lithium and graphite as resources are available in large Lithium is flammable in contact with
4
amount atmospheric moisture
Today, there are batteries under development and worth to mention here:
a) Redox Flow Battery
b) Sodium Battery
c) Zinc-Air Battery
d) Flexible Battery

d) Kinetic Energy Storage or Flywheel Concept

Basically, a flywheel is a disk with a certain amount of mass that spins, holding kinetic energy. Modern high-
tech flywheels are built with the disk attached to a rotor in upright position to prevent gravity influence. They
are charged by a simple electric motor that simultaneously acts as a generator in the process of discharging,
[58].
This technology is ideal for a variety of applications as a battery-free uninterruptible power supply (UPS)
solution, including data centres, healthcare facilities, broadcast stations, and other mission-critical
operations that require up to 30–40 s of backup power.
Table 16. Flywheels: Pros and Cons

A/A Pros Cons
1 Low maintenance and long-life span: up to 20 years High acquisition cost
2 Almost no carbon emissions Low storage capacity
3 Fast response time High self-discharge (3–20% per hour)
4 No toxic components
Stationary, grid-connected applications exist on the utility side of the electric meter. Here, the sale of services
and products is highly regulated and a market for an energy storage solution only exists after being created
by a regulatory agency. Flywheels are used in two such applications which are related: frequency regulation
and management of ramping due to fluctuating renewable generating resources.
e) Superconducting Magnetic Energy Storage

SMES is a novel technology that stores electricity from the grid within the magnetic field of a coil comprised
of superconducting wire with near-zero loss of energy.
Table 17. Superconducting magnetic energy storage: Pros and Cons

A/A Pros Cons
1 Capable of partial and deep discharge High energy losses (~12% per day)
Very expensive in production and
2 Fast response time
maintenance
Reduced efficiency due to the required
3 No environmental hazard
cooling process
Future prospects are difficult to determine because they depend on further development in superconducting
materials. The discovery of a suitable material with these properties on room temperature would change
nearly anything (hence, the consideration for being the holy grail of physics) and would make energy storage
and transmission easy, safe, and cheap. However, it is uncertain if such a material even exists.
3.3 SERVICES OF ENERGY STORAGE SYSTEMS

ESSs have numerous applications across the levels of the electricity grid. However, applications depend on
the discharge time and the power requirements. The diagram in Figure 10 on the right side categorizes
different storage technologies depending on power requirements of the system and the time of discharge.

This diagram shows the different characteristics of diverse kinds of technologies. It shows also that the
services that storage systems can provide do not need the same technical requirements. Depending on the
characteristics, different storage systems are suitable for specific services and applications. To these services
and applications different business cases are linked. In this diagram, power, efficiency and discharging time
(which can be assimilated to the energy stored) are illustrated since both are important characteristics of
storage systems. For further analysis, other parameters can be taken into account such as installation costs,
number of cycles, reliability or maintenance costs.
Figure 11. Electricity storage diagram [12]

Below are presented services EES can provide[63]. There are several services to use a battery which depend
on the market level where the battery is installed. In a first approximation, it can be distinguished into two
classes: Customer and Utility services as well as ISO (Independent System Operators) and RTO (Regional
Transmission Organizations) services.
a) Customer services
Customer services are every action with direct benefits to end users or prosumers that occur behind the
meter.
Self-Consumption
The main objective of this service is to reduce the energy surplus injected to grid. The Energy Storage System
stores the energy surplus and distributes it when the energy is necessary.
By doing that, the feed-in of electricity, generated by a PV system is minimized, increasing the economic
profit of solar PV.
Time-of-use bill management
From prosumer’s point of view, purchasing electricity from the market has, in most cases, different prices in
function of the time of the day and season (peak, off peak).
An ESS can store electrical energy at lower rate periods for using it at most expensive hours. In this way, an
ESS can purchase or store the cheaper energy from the grid and use it at higher rate periods in order to
reduce their bills.
Peak shaving
Peaks of electricity consumption are expensive to recover due to high prices of additional power production.
A peak shaving strategy is based on store energy at a low consumption period to inject it at a high

consumption time in order to reduce or delete demand peak from the grid. On the other hand, PV production
peaks can threaten the stability of the grid.
The ESS can provide energy capacity responding to these peaks. It avoids several costs due to additional
power supply and chargeable capacity.
Backup power
In an event of grid outage, an ESS can supply energy or provide backup power, for a daily backup to residential
customers. If this ESS is working with a local generator, it can supply energy from few seconds to hours, being
very useful for industrial operations.
Energy arbitrage
The Electricity Market has price fluctuations in function of the hour of the day. It means there are instants
with peak price and low price. For this reason, a business model is created based on buying on cheaper hours
and selling on expensive ones. The battery stores the cheapest energy and discharges the energy into the
grid when the price is high.
Load following, which manages the difference between day-ahead scheduled generator output, actual
generator output, and actual demand, is treated as subset of energy arbitrage in this report.
Demand Side Management
ESS can provide end-users with services to shift the consumption of grid’s electricity. As a result, activities
related to demand-side flexibility could be considered complementary for end-users e.g. by extending and
increasing the economic value of a community (renewable) energy generation project by incorporating
demand-side flexibility [64].
b) Independent System Operator (ISO) & Regional Transmission Organizations (RTO) services
Frequency regulation
The grid needs equilibrium between the power demand and production. This is shown by the frequency in
the grid which needs to be kept at 50 Hz in Europe. The whole electricity system has a determined inertia
which increases the system reaction time against disparities between generation and consumption. This
reaction time is reflected in a frequency variation: increasing if generation is higher than consumption, and
decreasing if generation is lower than consumption.
In order to provide frequency support, generation must adapt its production to meet the demand. The ESS,
at any level, can react faster than conventional power plants and maintain or restore the frequency by
providing or absorbing energy.
When a frequency descent is occurring the ESS injects a certain amount of energy into the grid, and the ESS
is charged if the frequency is above the nominal frequency. Of course, this strategy only can be done if the
ESS has available storage capacity.
There are three different types of reserve that can be activated to regulate the frequency:
• The primary reserve which is activated automatically
• The secondary reserve which relay the primary after a few minutes
• The tertiary reserve which is activated manually and relay the secondary reserve
Voltage regulation
Voltage is one of the key features for the generation and distribution network and it must be maintained
between acceptable bounds to ensure the correct functioning of the system. Depending on the properties of
a line (e.g. length) and the load as wells as generation units connected to it, the voltage deviates along and
especially at the end of the line. If a high number of loads is connected, a voltage drop can be observed
whereas high generation power leads to voltage increase. In order to regulate the voltage, active and reactive

power provided either by compensation or power electronic units (that are connected to storage devices)
are necessary.
Black start
When an incident leads to grid’s blackout, there is a need to restart the grid. In order to do so an initial power
to start the conventional power plants is necessary. This initial power can be provided by ESS.
Voltage quality improvement
Voltage quality covers a wide range of voltage disturbances and deviations in voltage magnitude or waveform
from the optimum values such as flickers, harmonics, unbalance, etc. RES can cause voltage quality issues
and with the installation of ESS can help to maintain the quality of the electrical signal on the grid within the
required limits.
c) Utility services
Distribution deferral and congestion relief
ESS can store energy at low consumption hours and inject it at highest consumption hours. In this situation,
the distribution system works in a more stable way and always under its maximum capacity. With this service,
the investments in the distribution grid can be delayed or entirely avoided. From the technical point of view
this service is comparable to Peak-Shaving discussed in the previous chapter.
ISOs charge utilities to use congested transmission corridors during certain times of the day. These utilities,
as ESS, can be deployed downstream of congested transmission periods to bring back this energy to the grid
and minimizing congestion in the transmission system. These services are quite similar to peak-shaving.
Power smoothing
A power production system can have big variations on its production, especially RES production. The ESS
would enable the production system to adapt its production to the power demand or at least to have a more
predictable production curve. In addition, for most RES installations the grid operator imposes ramp rate
limits. If the RES cannot remain within limits the operator may disconnect the unit resulting in loss of profit
for the RES owner.
As illustrated in Figure 11, a variety of energy storage technologies with different energy and power
characteristics exist. The PSH and the CAES can store large amounts of energy. These kinds of technologies
are most helpful on the frequency regulation, with the primary and secondary reserve, and demand response
mechanism with discharge in times of high demand to avoid additional power plant production to start.
Initially, PSH served primarily to cover short-term peak loads and improved the utilization of conventional
power plants (nuclear, coal, lignite). Conventional power plants usually lack flexibility and have long start and
shut-down times. For economical purposes, conventional power plants need to be permanently operated
within a constant range, which is supported by PSH. The existence of PSH also secures a part of the economic
risks of base load power plants, which are able to feed-in energy during night although the load might be low
in comparison to the amount of base load.
Moreover, PSH uses the fluctuating electricity consumption during the days and varying energy prices in
order to generate income. During night or at low-day times the energy prices are favourable and the
reservoirs are filled. During demand peak times the PSH discharge and sell the energy for higher prices which
can be a multiple of the purchasing price. With the expansion of renewable energy, the operating pattern of
PSH has changed significantly. Particularly in summer, when PV panels provide large quantities of electrical
energy during the day, large parts of the load and especially the peak at noon are already covered so that the
operating times of PSH are shifted more strongly into the morning and evening hours.
As it can be seen in Figure 3, flywheels cannot store as much energy as the hydro storage or the compressed
air. On the other hand, it has a lower discharging time which enables these kinds of systems to enlarge the
services that can be provided. As a matter of fact, flywheels can be used as primary reserve for frequency
regulation, reactive power supply (voltage regulation) and balancing sudden changes between supply and

consumption [65] [65]. The range of application of that technology can be compared to the range of battery
and have particular advantage that enable flywheels to have a place on market. Unfortunately, it remains
more expensive than battery for a lower energy density.
Flexibility
The European goal is to reach a 40% RES production on the energetic mix in 2030 and to go further after this
date. In fact, by looking at a longer-term basis, it appears that the need in flexibility will increase with the rise
of the insertion of Renewable Energy Resources (RES). As a matter of fact, the more the proportion of RES is
important on the energetic mix, the more an energetic flexibility is needed. Storage units can offer flexibility
value by allowing their load or generation profiles to be purposely changed from the planned generation or
consumption pattern [64].
d) Business models [67]

Back to 2015 in Germany, a nationwide, cloud-based virtual power plant (VPP) started operating with battery
storage and PV generation. Sonnen created a decentralized energy community where members have special
advantages within the energy market:
• Discounts on battery purchasing
• Electricity costs below wholesale prices, when sourced from the sonnenCommunity.
• Software updates.
• Weather forecast updates.
• Energy usage optimisation to match these weather predictions.
• Remote maintenance and monitoring.
Furthermore, community members share surplus energy between them so, when the power requirements
of a community member surpass its capacity, other members help out.
Currently EV are being added to the equation, thus providing more flexibility to community members to go
for enhanced energy capacity and services. It is worth mention that Sonnen’s batteries are built specifically
for homes and utility storage and not designed for cars, since these needs to be dense and light. Specifically,
Sonnen uses lithium-iron phosphate (LiFePO4) batteries from Sony, designed to last 10,000 cycles.

4 ENVISAGED DISTRIBUTED STORAGE CAPABILITIES AND THEIR APPLICATIONS IN

EUROPEAN NETWORKS
The global demand for electricity is huge, and it’s growing by approximately 3.6% annually, but the sun isn’t
always shining nor is the wind always blowing. For technical reasons, however, the amount of electricity fed
into the power grid must always remain on the same level as demanded by the consumers to prevent
blackouts and damage to the grid. It leads to situations where the production is higher than the consumption
or vice versa. This is where storage technologies come into play—they are the key element to balance out
these flaws [68].
The benefits of energy storage are significant and have long been recognized as necessary for the coordinated
and reliable operation of utility grids. Energy storage is especially important to the integration of distributed
renewable generation technologies. Storage protects against errors in forecasting, removes barriers to
connecting renewable energy resources to a variety of grids, shifts demand on-peaks by storing off-peak
energy, provides frequency regulation, and can delay expensive grid upgrades or downtime due to sudden
demand or any trip-off of any sources attached to the nationwide grid system [69].
So, there is a need to find ways to compensate for this fluctuation, to save the energy in times of sunny and
windy days and use it for cloudy and windless days. Technology to do so exists, and we even use them today,
but its capacity is not enough by a long shot—not if we’re planning to go green and sustainable. The problem
emerging is that we can’t just simply build more of the existing storage technologies as each technology has
its own flaws. For example, pumped hydro storage, the most reliable and so far only economical storage
technology available, is extremely limited by few potential sites and strict laws on nature conservation, [70].
It is possible to divide grid storage applications into two broad categories based on the length of time a
storage device needs to provide services [71].
➢ High-power applications where the device must respond rapidly and be able to discharge for only
short-term periods (up to about 1 h) and
➢ Energy management-related applications where the device may respond more slowly but must be
able to discharge for several hours or more.
Ideally, all storage devices would be able to provide all services, but some technologies are technically
restricted to provide only short-term services. However, many of these services have very high value in the
grid, so short-term storage can still provide considerable benefits.
4.1 ENVISAGED DISTRIBUTED STORAGE AT EUROPEAN LEVEL – DRIVEN FORCE, AND

DEPLOYMENT
In the past, centralized power plants generated electricity that was transferred from the high-voltage grid to
the consumers in the distributed medium or low-voltage grid (see Figure 12). With the increase of renewable
power sources like local roof-mounted solar panels the energy transfer was partially reversed.

Figure 12. Sketch of power flow of centralized and decentralized energy production (left),
interconnection of energy cells (right)
The grid is not designed for this kind of usage. Therefore, more and more low-voltage grids reach their
technical limits and no additional renewables can be integrated. In times of high energy production and low
demand the grid faces problems like voltage increase and overload of grid utilities. Thus, high investments in
reinforcing the grids are necessary.
However not only low-voltage grids but also higher grid levels are affected by this development. In a study
the Technical University of Munich investigated the load of two HV/MV transformers in a Bavarian grid with
high penetration of Renewables for a period of 6 years. As illustrated in Figure 13 the maximum power which
was fed into the 110 kV grid increased from 3.5 to 18.48 MW respectively from 0.00 to 13.85 MW. During
the same period the maximum power from the 110 kV grid stayed the same or decreased slightly.
Figure 13. Measured exchange with the HV grid at two HV/MV transformer stations in Germany [72]
Stationary energy storage systems that are operated in low-voltage grids may reduce these challenges, in the
low-voltage grid but also on higher grid levels. Together with partners the Technical University Munich
further investigated the impact of energy storage systems in the low voltage grid on superimposed grid levels.
In a simulation including the before mentioned transformers it was shown that the load of the HV/MV
transformer could be reduced when battery storage systems are deployed in the low voltage grid. Hereby

different scenarios were compared taken into account the location as well as the number and size of the
installed systems. The results are shown in Figure 14.
Figure 14. Influence of LV storages on HV/MV transformer loading and MV grid losses [72]
On a larger scale it is in the same manner possible that several energy cells consisting of low- and medium
voltage grids connected at 20 kV could reduce the load on the 110 kV or even higher grid levels. A possible
layout of the future energy system with a high share of renewables and the deployment of energy storage
systems is shown in the figure below.
Figure 15. Layout of the future European energy system
The major driving forces for the deployment of distributed storage are increasing renewable generation,
rising electricity prices and decreasing system cost. Especially the end user prices of battery storage systems
in Germany have decreased within 4 years by roughly 50% to an average value of about 1.300 € /kWh. When

just medium sized systems with capacities above 12 kWh are considered the average end user price amounts
to 1.000 €/kWh. The statistics are presented in Figure 16.
Figure 16. End user price for stationary battery storage systems (based on [73])
PV prices have dropped dramatically in the last 10-15 years and the system prices keep slightly decreasing as
well. As a consequence, the penetration of PV is getting higher and higher but it also reduces the feed-in
tariffs or other incentives in several countries. This development builds up a strong pressure to deploy
distributed storage in order to increase local usage of cheap PV energy. Prosumers benefit from the
deployment of energy storage systems since they become less dependent from energy suppliers and
electricity prices. Also due to the bad reliability of low voltage grids in some countries people want to own
batteries with backup functionality. In case of a blackout the energy storage systems could supply loads for
several hours until the grid is restored. Beside economic aspects the active contribution to the energy
transition is another driver. By owning PV as well as batteries people become a prosumer for idealistic
reasons.
From an economical point of view the combined usage of distributed energy storage for multiple purposes
is of benefit. Typically, the increase of self-sufficiency is the primary driving force for people owning
distributed small-scale energy storage systems. In order to increase the revenue streams for the prosumer
there’s the need to combine the local service with grid-supporting services. This combination is usually not
trivial, because any modification of the “canonical self-sufficiency algorithm” (i.e.: charge whenever surplus
power is available, discharge whenever power is missing) inevitably reduces the self-sufficiency of the
affected household, which is economically not favourable. Therefore, the combination must be done in
sophisticated ways.
In the following operation profiles for different services and applications are presented in detail. Also, the
combination of different services is illustrated.
a) Self-sufficiency
In Figure 17 a typical operation profile of a residential solar battery storage system is shown. As it can be
seen the battery storage systems is charged in the morning as soon as the PV production surpasses the load.
Especially during sunny days the system is often fully charged before noon meaning that the PV peak that
occurs around mid-day is not covered by the battery. As a consequence the PV peak power is fed into the
grid which is a stress factor.

Figure 17. Operation strategy for pure self-consumption [74]
b) Self-consumption and local grid-support

In order to relief the grid the charging of the battery storage system has to be shifted from the morning hours
to noon and the early afternoon. By defining a maximum feed-in limit the stress on the grid can be controlled.
The resulting operation profile when considering this grid-supporting measure is illustrated in Figure 18. It
can be observed that the battery storage system doesn’t start charging as soon as the PV production
surpasses the load. Instead the operation is concentrated around times of high PV production. As soon as the
feed-in limit is exceeded the battery is charged with the resulting power and thus cuts the PV peak. As a
constraint for this operation it must be considered that the owner of the battery storage system wants to
have a fully-charged system at the end of the day. Thus, this operation strategy is relying on accurate
production and load forecasts in order to calculate if the expected energy production throughout the whole
day is high enough in order to allow shifting of the charging period.
As illustrated before the reduction of PV peaks will have a positive influence on the low-voltage grid and on
the superimposed grid levels. The better the distributed assets and the energy cells are coordinated the
higher the positive effect on higher grid levels.
Figure 18. Operation strategy for self-consumption and grid support [74]
Self-consumption, local grid-support and frequency regulation

Due to very fast response times battery storage systems are also suited in order to provide frequency
regulation services. However, in order to provide this kind of service the storage systems must have enough
free capacities. Available capacities on the other hand are depending on the time of the day and of the year.
In Figure 19 the average state of charge (SOC) of the battery depending on the month of the year is illustrated.
It can be observed that especially during the winter months reaching from November to February the average
SOC is comparably low meaning that capacities are available. These capacities could be used in order to

provide additional services, e.g. providing balancing power, frequency regulation or trading in energy
markets.
Figure 19. Average State of charge a typical battery storage system depending on month of the year
In order to provide frequency regulation services in parallel to local grid support and self-sufficiency
enhancement an even more sophisticated operation strategy is necessary. In Figure 20 the resulting
operation profile of a battery storage system that provides the mentioned services at the same time is
exemplarily shown. In that case Secondary Control Reserve (SCR) for frequency support is considered and
the results are based on a medium sized battery (max. 200 kW) which serves as a community storage system
in the low-voltage grid. However these strategies could be also applied on other storage systems as well.
Whereas in Figure 18 the feed-in limit was based on a household the feed-in limit in this scenario is derived
from the maximum load from the transformer in the respective low-voltage grid. When applying this
operation strategy the load of the transformer is kept under this sepcific limit marked with a dashed line.
The overall capacity of the battery storage system is divided into a capacity for providing SCR and other
services (rest). It can be seen that both divisions are used in order to keep the transformer load below the
defined limit. Whereas the “rest” part is charged directly in the morning hours in order to have enough
capacity in order to power the community in the evening the “SCR” part is operated from late morning to
early evening.

Figure 20. Operation strategy for self-consumption, grid support and SCR (frequency support) [74]
4.2 PRACTICE OF GREECE ON FUTURE STORAGE TECHNOLOGIES

Energy storage technology has a great potential to improve electric power grids, to enable growth in
renewable electricity generation, and to provide alternatives to oil-derived fuels in the nation’s
transportation sector. In the electric power system, the promise of these technologies lies in their potential
to increase grid efficiency and reliability - optimizing power flows and supporting variable power supplies
from wind and solar generation.
Most energy storage studies have examined grid-scale storage or, at most, the electricity system in isolation,
[75]. Yet energy storage could be integrated much more widely across the energy system. One approach
would be to reduce electricity system imbalances by integrating storage with renewable generation at the
point of generation, [76]. Another strategy would be to convert excess electricity into other storage fuels
that are not used to return electricity to the grid. For example, excess electricity could produce heat for
storage in boilers at district heat or building scales, in a demand-side management version of the night
storage heaters that are already widely-used in some countries. Hydrogen could be stored for later electricity
production, [77], [78], particularly inter-seasonal storage, but could also be used for transport or heat
provision, [79]. Although battery vehicles primarily provide transport services, vehicle-to-grid technologies
could use car batteries for power-to-power storage in a smart grid, [80]. Finding the most appropriate
methods of integrating the many different types of energy storage into existing energy systems is a key
research question for energy system researchers, [81].
In other words, identifying the most appropriate roles is therefore a difficult challenge. Yet other than
pumped hydro, most technologies are currently at the demonstration stage and there are no broad
guidelines available about the suitability of different technologies for particular situations. Some
technologies have been tested at large scale (100–1000 MW), but the future performance of most
technologies is not well understood. Novel approaches to integration are still under development.
A key challenge for finding the most appropriate roles for energy storage is how to cope with future
uncertainty, both in terms of the electricity system and the technologies themselves [82]. Roadmaps for
energy storage are occasionally published, for example, [83], based on a long-term vision, but these do not
generally consider uncertainties in the costs and the value of energy storage technologies, nor whether
energy storage investments can be justified now to keep the option open for their use in the future. A real
options approach could be used to assess the option value of energy storage in an uncertain future.
The move to a low-carbon economy will cause nothing less than a revolution in how energy storage is used.

Pumped Hydro Energy Storage is undoubtedly the most mature large-scale energy storage technology.
Especially in Greece, pumped storage is the most suitable energy storage technology for Greece, and it is
already considered in the energy plans for the exploitation of surplus RES production.
In Greece, Hydro Power Plant and Hydro Pumped Storage (Thisavros: 3x128MWp, Sfikia: 3x105MWp) will
significant contribute in the maximization of RES and in the reinforcement of the national interconnection
network. In addition, the excess energy from wind, photovoltaic or thermal units will be hydraulically stored,
through water pumping from the lower to the upper reservoirs, during the low load consumption or in
renewables overproduction periods.
Consequently, sufficient energy storage capacity needs to be developed during the next years, in order to
avoid excessive rejections of RES production. In Greece, pumped storage is the most mature and reliable
technology for such large storage rates, and also it is suitable for the ground topology of the country,
therefore it provides the best solution for Greece from both technical and economic point of view.
In Greece, other benefits of hydro pumped storage are:
➢ Ancillary services (frequency and voltage control, spinning reserve, black start etc.).
➢ Provide flexibility and stability to the interconnected grid ensuring security and efficiency in the
transmission and delivery of electrical power supply.
➢ Stabilization of the electricity market prices.
➢ Energy trading from RES between Greece and other EU Member States (in future).
➢ Can smooth out the “Duck” curve and allow better load following during fluctuations of renewables
(in future).
➢ Can manage congestion issues at interconnection level (in future).
➢ Greenhouse gas emissions reduction.
Despite the above, there exist several barriers which are slowing down the development of new PSH plants.
These barriers can be classified into three categories: technological, policy and environmental challenges.
Some of them are: few potential sites, huge environmental impacts, require a significant huge water source.
An important barrier, also, is the lack of Regulatory Framework for the operation of pumped hydro storage
plants in order to store the excessive RES production in the Interconnected (Mainland) Transmission System
of Greece (while such a regulatory framework exists in the non-interconnected power systems of the islands
because, due to the low demand in these systems, there are significant curtailments of the RES production).
Greece is interested in energy storage in all its forms (pump storage, batteries) and this can be seen in the
“National Plan for Energy and Climate” which the Greek government submitted to the European Commission,
where new energy storage units (pumped hydro or batteries) of a capacity of 700 MW are forecasted.
4.3 PRACTICE OF SERBIA ON BULK STORAGE TECHNOLOGIES

Renewable energy has recently become part of the Serbian power system (if we exclude large conventional
hydropower plants that were built a long time ago), and the share of intermittent production in the total
production mix is still not large. The Republic of Serbia has adopted a decree determining the categories of
privileged electricity producers and regulating incentive measures. The incentive period is 12 years for each
of the power plants of the privileged power producers. By this decree, the public supplier is obliged to buy
all the electricity produced by privileged power producers. Moreover, the public supplier is specified by this
decree as balance responsible party for all producers who get incentives. The role of the public supplier in
the Serbian power system is assigned to the Public Enterprise Electric Power Industry of Serbia (PE EPS),
which is an integrated state-owned power utility. PE EPS as dominant electricity producer is currently the
only one company in Serbia that has the capacity to balance intermittent production and it covers almost the
entire power value chain, from mining, through electricity generation and distribution (as separate legal
entity DSO “EPS Distribucija”), up to electricity trading and supply.

Feed-in tariffs from the first round of incentives for wind (500 MW) and solar (2MW) are divided and now it
is awaiting the completion of the construction of all the wind farms that received incentives.
About 300 MW wind farms have been put into operation so far (mostly at the end of 2018 and early 2019)
and almost all wind farms are connected to the Joint Stock Company „Elektromreža Srbije“ (JSC EMS)
transmission network. It is expected that by the end of 2020, there will be a total of 500 MW of wind power
plants on the network and most of these wind farms will be concentrated in the region of southern Banat
(which has the most favorable winds for the development of wind farms) and connected to the JSC EMS
transmission network. In parallel with the development of wind farms, JSC EMS strengthens the network in
the South Banat region, so that network problems from the aspect of system security are still not recorded.
Bearing in mind the above, so far there was no need for the construction of small distributed storage
capacities. For the purpose of storing electricity when there are energy surpluses in the system (and when
prices on the wholesale electricity market are low), PE EPS uses large storage capacities that were built a long
time ago: Pumped storage hydropower Bajina Bašta and Lisina pumps.
PSH Bajina Bašta has installed power of 600 MW (2x300 MW in generating mode and 2x280 MW in pumping
mode) and energy storage of 194 GWh. Charging time for PSH Bajina Bašta is approx. 494 hours, while
discharging time is approx. 320 hours. The round-trip energy efficiency of PSH Bajina Bašta is 73%. In
generating mode, it can perform secondary regulation. The main characteristics of the PSH Bajina Bašta are
as follows:
Table 18. Main characteristics of the PSH Bajina Bašta

Power plant type  Pumped storage 
Installed capacity  600 MW 
Energy storage  194 GWh 
Live storage  170х106 m3
Type and number of units  pump-turbine x 2 
Nominal motor-generator capacity  310/315 MVA 
Discharge per unit  51.7/64.5 m3/s 
Pump head/hydraulic head  579/572 m 
Normal backwater elevation  862 mnm 
Tailwater elevation  290 mnm 
cos φ  1.0 / 0.95 
Lisina pumps are part of the system so-called Vlasina HPP’s and their purpose is to pump water from Lake
Lisina (which has a natural inflow of water into the accumulation) into the huge Vlasina Lake in the period of
low prices on the electricity market (off-peak periods). The water stored in Lake Vlasina is used to generate
electricity by passing through a cascade of 4 hydropower plants (HPP Vrla 1, HPP Vrla 2, HPP Vrla 3 and HPP
Vrla 4) in peak periods when demand for energy is high. The discharge time of the stored water from Vlasina
Lake is approx. 1800 hours, assuming no natural inflow into the accumulation (which is unlikely). This cascade
is shown in the figure below:

Figure 21. Lisina pumps and Vlasina HPP

The main characteristics of the Vlasina HPPs are as follows:
Table 19. Main Characteristics of the Vlasina HPPs

Lisina
Plant name HPP Vrla 1 HPP Vrla 2 HPP Vrla 3 HPP Vrla 4
pumps
Type and number of units pump x 2 turbine x 4 turbine x 2 turbine x 2 turbine x 2
Total installed capacity (MW) 28 50.6 24 29 25
Energy storage (GWh) 13.9 198 / / /
Total volume of accumulation (m^3) 7.5x10^6 165x10^6 0.1x10^6 0.05x10^6 0.1x10^6
Total discharge (m^3/s) 7.5 18.3 18.5 18.4 18.4
Head (m) 320-350 314-338 137-154 168-192 146-159
Both of these storage assets (PSH Bajina Bašta and Vlasina HPP’s) are optimized on an annual basis in order
to maximize profits. Optimization is done based on the prediction of market prices (input data) as well as on
the basis of the probability of natural inflows into accumulations (only for Vlasina HPP’s). Generally, both
assets usually operate in pumping mode during the night and in generation mode during peak hours. Also,
pumping is dominant during the spring, while generation is dominant during the winter. This means that the
reservoirs are quite empty at the end of the winter and quite full at the end of the spring. This is a way to
take advantage of seasonal differences in the price of electricity to achieve the best use of large storage
capacities.
Also, both assets (especially PSH Bajina Basta) play an important role in providing balancing and ancillary
services to the transmission system operator JSC EMS and could be used for demand response but only with
fixed load.
The development of new storage capacities will most likely be conditioned by the construction of new
intermittent sources of electricity in Serbia, as well as in the region. The adoption of regulations for the
second round of incentives is now pending in Serbia and it is expected that the feed-in tariffs will be replaced
by the auction mechanism, but it is still unknown which technologies and in which amount will be subsidized.
Considering the fact that investors who build large scale RES capacities can offer lower prices on auctions
due to the economies of scale, it is expected that in the future it will prevail the large-scale RES capacities in
Serbia. In this regard, it is unlikely that in Serbia, distributed storage capacities will be built on a larger scale.

It is more likely that another PSH will be built for centralized storage of surplus energy from Serbia and the
region.

5 STORAGE POTENTIALS REGARDING INCREASED RES PENETRATION IN FUTURE

NETWORKS
5.1 RES PENETRATION FUTURE SCENARIOS
According to recent studies like TYNDP 2018, all the scenarios foreseen a high increment of renewable
sources penetration at European level. This report specifies three different scenarios for 2030 and 2040,
mainly divided in Distributed Generation, Global Climate Action and Sustainable Transition concepts.
TYNDP Scenarios are characterized by different assumptions related to thermal merit order, demand
consumption and renewable penetration. The following figure summarizes the system share of the following
Renewable Energy Systems (RES) under different scenarios and timeline.
Figure 22. The TYNDP 2018 scenarios for 2030 and 2040 based on three storylines [84]
The Best Estimate scenarios for 2020 and 2025 are based on TSO perspective, reflecting all national and
European regulations in place, whilst not conflicting with any of the other scenarios. A sensitivity analysis
regarding the merit order of coal and gas in the power sector is included for 2025 following stakeholder input
regarding the uncertainty on prices, even in the short term. These are described as 2025 Coal Before Gas
(CBG) and 2025 Gas Before Coal (GBC). By 2030, the storylines dictate that gas is before coal in the merit
order, driven by prices and the need to reduce emissions.
Below a short review of the different analysed scenario with a focus on the installed generation capacity and
the demand in the target countries for 2030 can be found.
• 2030 Sustainable Transition Scenario
The main goal of the TYNDP ‘Sustainable Transition’ scenario (ST) is the achievement of a quick and
economically sustainable CO2 reduction through a mix of national regulation and subsidies and emission
trading schemes.
• 2030 Distributed Generation Scenario
The Distributed Generation (DG) scenario considers a more decentralized development with focus on end
user technology. For all the considered countries higher demand (except France) and higher RES share in the
mix of installed capacity with respect to the main scenario is expected in 2030.
• 2030 Global Climate Action Scenario

The Global Climate Action scenario foresees a decarbonisation process by means of renewable development
in both gas and electricity sectors. With respect to the Sustainable Scenario it can be noticed that this scenario
considers lower growth in terms of RES penetration and load.
In general terms, as far as expected energy consumption is concerned, a growth in heating/cooling and
transport system justifies the higher load expectation in DG (Distributed Generation) scenario. On the
contrary, GCA (Global Climate Action) scenario models the achievement of the 2030 climate and energy
targets as agreed by the European Council in 2014 also including an energy efficiency target of 30%. Expected
load and RES penetration in all TYNDP2018 different target years and scenarios, is reported in the following
figure.
Figure 23. RES penetration in all TYNDP2018 – years and scenarios [85]
5.2 EXPECTED RES PENETRATION PER COUNTRY

Previously to consider the RES penetration per country under different scenarios, it is very important to
remark that according the best estimations all the scenarios show and demonstrate an increment of
electricity demand (at European level). For this reason, and more important than never, to evaluate the
impact of the RES penetration in each country is essential for analysing what will be the role and the impact
of the storage technologies in the new energy mix scenarios.
Considering the previous concept, the following figure resumes the expected electricity demand, in all
countries of the region under study, according different scenarios. In order to visualize in a better way the
values associated to each national power system, the data has been distributed in three figures according
the capacity of each power system [200,600] TWh, [40,100] TWh and [1,50] TWh.

Figure 24. Electricity demand based on different future scenario
As can be seen in the previous (upper and left) figure, the electricity demand scenarios in Germany foreseen
a lower reduction of electricity demand for 2025 and 2030 years, while for 2040 a reduced increment (from

2020) value is expected in all DG and CGA scenarios. Regarding Spain and Great Britain forecasting, an
increment on electricity demand is expected, being the ST scenario the most conservative. Moreover, paying
attention to the (upper and right) figure and lower figure, where the electricity demand is analysed for
Romania, Greece, Bulgaria, Serbia, Austria, Bosnia and Herzegovina, Slovenia, Croatia, Macedonia, and
Montenegro are analysed, it is important to mention that in general terms the ST and CGA show the same
forecasting, with a conservative vision in comparison with DG scenario, where a major increment of
electricity demand is forecasted. In addition, all of the national systems included in central and right figures
show similar increment of electricity demand, with exception to Greece and Romania, where the increment
is higher than in rest of power systems.
On the other hand, besides the previous scenarios, where an increment of electricity demand is evidenced,
a reduction of nuclear and coal generation is foreseen. For this reason and due to the intermittence and non-
dispatchability of renewable sources, to evaluate different scenarios of RES penetration in future energy mix
of each country is needed with the aim of analysing in a proper way the future requirements of storage and
back-up systems at European level.
The following figures consider the RES penetration (at generation level) for each country under study in
CROSSBOW project, differencing among renewable and non-renewable sources.
Figure 25. DG scenario 2020+25+30DG+40DG

As shown in the previous Figure, the renewable mix in DG scenario is going to increase for all countries in the
future years, being more important in Romania, Greece, Serbia and Macedonia. It is important to mention
that despite the renewable mix being higher in all the countries, the generation (at energy production level)
will be reduced due the intermittence of main renewable sources like PV or Wind farm technologies.
The countries with a major penetration of renewables in the energy mix will be Austria, Montenegro, Bosnia
and Herzegovina, and Greece, where almost a 90% would be reached in 2040. The percentage share of RES
in Macedonia, in 2030 will be between 21.1% and 27.7% with average value (realistically achievable) of nearly
25% [106].

Figure 26. ST scenario 2020+25+30ST+40ST

Under the ST scenario, important differences can be evidenced in comparison with previous DG scenario. In
this case, as first point, a general reduction of renewable penetration is noted for all countries (in comparison
with ST scenario). Besides the increment for years 2030 and 2040 is reduced with special attention to
Macedonia, where a renewable penetration would be reduced for next years, against the tendency of the
rest of countries.
This scenario situates only Austria in levels of 90% of renewable penetration for 2040 year, being the rest of
countries among levels of 50% to 80%, with the exception of Macedonia that would only reach the 40%
approximately.
Figure 27. CGA scenario 2020+25+30ST+40DG

Finally, regarding the CGA scenario an intermediate situation is presented, considering the same levels of RES
increment until 2030 year and higher levels of renewable penetration than ST scenario for 2040 year, being
this period (2030 – 2040) the period with a faster increment of renewables in the energy mix.

As a general conclusion, in all countries a high RES penetration can be foreseen, being the DG scenario where
the renewable penetration is highest in comparison with ST and CGA scenarios. However, it is important to
differentiate among different renewable technologies, because some of them like Wind or Solar (PV) can be
considered as non-dispatchable while others like biomass or biogas can be fully dispatchable, and others like
hydro can be even adapted for providing storage services through Hydro Pump technology. In order to
analyse the impact of the renewable mix in each power system, the following figures evaluate the total RES
penetration considering Solar, Wind, Other RES and Hydro technologies.
Figure 28. DG scenario 2020+25+30DG+40DG

As showed in previous figure, DG scenario foresees an important increment of solar PV technology in the
renewable mix in all countries, having a very important development from year 2025 to 2030 in the countries
where currently there is not a high level of renewable power generation installed. Moreover, on-shore wind
is the second technology (non-dispatchable) with a major penetration in each electricity system. Special
attention can be paid to off-shore wind in Great Britain, where could suffer a higher development than on-
shore technology. Finally, it is relevant to mention the important role of Hydro technology in those electrical
systems with lower demand, like Montenegro, Bosnia and Herzegovina, or Macedonia where it can cover
among the 30% to 80% approximately for 2025 to 2040.
Figure 29. ST scenario 2020+25+30ST+40ST

In ST scenario a lower development of solar PV technology can be observed what implies a stronger role of
on-shore wind technology (and off-shore in case of Great Britain) in terms of non-dispatchable renewable
technologies. On the other hand, due to the lower penetration of PV and Wind, Hydro technology is the most
important renewable technology in electricity systems with a lower electricity demand and high availability
of water resources.

Figure 30. CGA scenario 2020+25+30ST+40DG

In this case, regarding CGA scenario it also showed a lower development of solar PV technology until 2030
year, joined to relevant increment of solar PV from 2030 to 2040, in comparison with ST scenario.
Finally, it is important to mention that Hydro-Pump technology has a lower development in DG scenario due
to the renewable increment is focused in smaller renewable facilities that are more oriented to other types
of storage technologies like batteries (Li-Ion or REDOX). However, in ST scenario and specially CGA scenario
a higher development of this technology is foreseen, playing a very important role in some electricity
systems, like Serbia, Bosnia Herzegovina, Croatia, Slovenia, Macedonia and Austria. This increment in Hydro-
Pump technology is strongly associated to the important increment of Solar and Wind technologies in the
period between 2030 and 2040, due to their intermittence and absence of dispatchability.
5.3 RES IMPACT IN STORAGE FUTURE SCENARIOS

Considering the main conclusions of previous chapters, Distributed Generation scenario is the only one
where a very high growth of storage capacity is considered, coherently with a more decentralized
development of the power system. The following table summarizes the Storages foreseen development
according the different RES penetration scenarios.
Table 20. Storage and RES penetration

Sustainable Distributed Global Climate Action
Transition (ST) Generation (DG) (GCA)
Storage Low growth Very high growth Moderate growth
RES Moderate growth High growth High growth
It can be noticed that all 2030 scenarios are “Gas Before Coal” scenarios, meaning that the marginal cost of
the most performing gas technology (Combined Cycle Gas Turbine) is lower than the most performing coal
technology. This scenario characteristic is coherent with the decarbonisation target set by the European
Energy Roadmap. In addition, 15 storage projects should be proposed, 12 Hydro Pumped Storage and 3
Compressed air projects.
In relation with the storage capacities each scenario has associated a different technology development [86]
as showing below:
- Sustainable transition: low growth
In this case, moderate growth of renewables (mainly solar PV and Wind) introduce a controlled disturbance
in the electrical system, so it can be compensated with existing conventional facilities and through a low
growth of storage capacities.

- Distributed Generation: very high growth

This scenario shows a very high growth of storage capacity mainly due to the high increment of PV capacity,
which has an intermittent behaviour during the day, as well as a stationary one along the year. This
characteristic behaviour requires small storage systems (like batteries) in order to compensate the daily
variations in the distributed power plants and large storage systems (like hydro pump) in order to
compensate the season variations.
DG2030: Considering that 10% of new solar installations are with batteries: 0.1 kWh of battery per each 1kW
solar (500 W/kWh) and pumped storage based on ENTSOE data collection for ST2030.
DG2040: Considering that 50% of new solar installations are with batteries: 0.5 kWh of battery per each 1kW
solar (500 W/kWh) and pumped storage based on ENTSOE data collection for ST2030.
- Global Climate action: moderate growth
This scenario considers a similar evolution of RES penetration until 2030 to the ST scenario. However, from
2030 to 2040 a higher RES penetration than ST is expected. For this reason, an intermediate growth is
expected, considering that 10% of new solar installations are equipped with batteries: 0.1 kWh of battery per
each 1kW solar (500 W/kWh).
5.4 ANALYSIS OF STORAGE TECHNOLOGIES AT DISTRIBUTED LEVEL

Driven by the European policies and the scenarios mentioned previously, significant changes are expected in
the European energy system by 2050. Achieving a significant level of decarbonisation already in 2030 –
through a RES penetration increment in the power systems – will require the power generation system to
undergo significant structural changes which will include the development of a considerable capacity of
energy storage. There will be a fundamental shift from a centralised energy system based on fossil fuels to a
distributed generation system supported by a range of flexibility options. In a system with a high proportion
of variable RES generation, it will be challenging to ensure that electricity supply in terms of frequency,
voltage and stability is fully guaranteed, flexible and dispatchable. The implementation of these changes
necessitates significant investments for the development of storage technologies and facilities that support
the non-dispatchable RES generation [88].
Alongside other flexibility options, energy storage will play a crucial role in the transition to a low-carbon
energy system. IRENA estimates that total electricity storage capacity appears set to triple in energy terms
by 2030, if countries proceed to double the share of renewables in the world’s energy system [87].
Considering the expected storage penetration, at Distribution Level, storage technologies can support
different services carrying out and important role in the following aspects:
Table 21. Examples of services of batteries at Distribution level [88]

Service Description
Capacity Support Based on the use of an energy storage unit to shift load, e.g. from peak
to base load periods, to reduce maximum currents flowing though
constrained grid assets.
Contingency Grid Support It aims to the use of energy storage to support the grid and reduce the
impacts of the loss of a major grid component – in emergency
situations.
Distribution investment deferral It is focused on the use of energy storage to defer infrastructure
upgrades, or install new power lines for solving congestions problems.

Distribution power quality This service aims to maintain the voltage profile and frequency within
acceptable limits, which increases the quality of supply and reduced
the probability of black-outs.
Intentional islanding Energy storage can be used to improve system reliability by energising
a feeder during an outage.
Limitation upstream disturbances Limitation of upstream disturbances relates to the fact that DSOs have
a network access contract with TSOs, with rules set according to
Network Codes, which require them to limit the disturbances they
cause on upstream high voltage grids to contractual values. If these
limits are exceeded, some types of energy storage systems can help
comply with these commitments by performing active filtering.
Besides all of these services, a clear benefit obtained from the distributed installation of several storage
systems and technologies is the maximization of the non-dispatchable renewable technologies like wind or
solar. The main problem of these technologies is the decoupling character between generation and
consumption; however the proper dimensioning of the storage technologies guarantees an adequate power
and energy availability at Distributed Level.
In addition, storage systems can smooth out the peaks and troughs of intermittent electricity supplies from
renewable energies through large and centralized storage systems, but small storages facilities distributed
near the renewable power plants may also have more far-reaching implications for the design and operation
of the electricity distribution grids of the future, not least smart grids [89].
Distributed solutions support voltage control, reduction of curtailment, as well as other services mentioned
in previous table. Furthermore, at the customer level, they can provide services for peak shaving, islanding
during a black-out and general demand response. Besides, this Distributed configuration can be more
efficient than large centralised facilities and sustainable, in economic terms, due to the infrastructure
associated to large storages (at transmission level) are not needed.
6 AN OVERVIEW OF EXISTING POLICY AND MARKET ENABLING DISTRIBUTED

STORAGE ACTIONS
6.1 MARKET INTEGRATION OF DISTRIBUTED ENERGY STORAGE
a) Value of energy storage in power systems
ESS has been identified as a potential solution to the challenges arising from changing power systems. The
ability to store energy, that is defer electricity consumption, and the high level of flexibility of storage
technologies could play a major role in the transition to a low carbon future. Nevertheless, while the
technological benefits of ESS integration are proven, their economic value is difficult to specify, and the
current regulatory framework leads to some unrealisable profits from ESS operation. This remains a major
barrier to the large-scale deployment of ESS.
As stated in [90], storage value can be described in terms of system benefits or market revenue. The first
approach takes into account the various services ESS can provide in power systems, such as RES smoothing,
peak reduction, frequency control and voltage control. The potential system benefits of ESS could be
characterised by [91]:
• reduction in generation operating costs due to the ability to enhance system integration of RES
generation and displace inefficient reserves
• reduction in generation investment costs through contributions to security of supply

• reduction in network investment costs through deferral network reinforcement.

In fact, according to the same study for the case of Great Britain, ESS in a future low carbon system could
yield net annual benefits of £0.12bn in 2020, £2bn in 2030, and over £10bn in 2050. Furthermore, both bulk
and distributed storage are considered, and it was found that location is a significant factor in both cases.
Unsurprisingly, while bulk storage is more beneficial near large producers, distributed ESS contributes more
located in areas with a larger consumption. Nevertheless, distributed storage was found to have a higher
aggregated value than bulk storage in all cases [91].
On the other hand, storage benefits from a market perspectives stem from the ability of ESS to help meet
contractual agreements, price arbitrage and balancing and ancillary services [90]. Although ESS value has
been the topic of research in multiple studies, the assigned value varies between all of them. This is due to
the different approaches to its quantification, the different allocation of capacity to ESS services, as well as
different geographical, market and technical parameters. This leads to the conclusion that determining ESS
value accurately is difficult and system specific, i.e. highly dependent on input factors.
The potential benefits of ESS can be put in terms of time horizon, as shown in Figure 31. However, the current
regulatory framework is arguably inadequate for the case of storage due to the multitude of services ESS can
offer in various power system areas over all time horizons. The challenge for policy makers is to develop such
market mechanisms that adequately reward ESS owners for delivering these various benefits. This is a
challenging task since the economic benefits of storage are not yet fully understood considering the difficulty
in computing the accurate value of ESS altogether and the benefits to each market participant, and thus the
associated revenue streams [92].
Figure 31. ESS services across different time horizons [92]
b) Business case for energy storage

With regard to the various ESS services, the allocation of ESS capacity between different functions is
extremely important. This fact is supported by multiple studies that conclude that under current market
conditions ESS are never economically viable through price arbitrage alone, and seldom profitable when
aggregating benefits from price arbitrage and revenues from ancillary services. Some examples can be found
in [90], [93], [94], [95], [96] and [97].
The optimal allocation of ESS capacity to different markets that would maximise profit and thus attract
investment is only possible through stochastic scheduling because service requirements vary dynamically
depending on system conditions [91]. There are different published methods for this purpose, for example,
in [92], [98] and [99]. Specifically, [92] presents an optimisation model for the coordination of multiple-
service provision of a distributed ESS unit, which includes price arbitrage, system balancing including fast
frequency regulation, peak shaving, and active and reactive power control for congestion management,
pictorially represented in Figure 32.

Figure 32. Representation of multi-service provision of a distributed ESS [92]

Furthermore, [98] extends the same approach to consider additional revenue from wind generation support
and the capacity market. From Figure 33 it can be concluded that ESS value increases with the participation
in each additional market.
Figure 33. Aggregated ESS value from the participation in different markets in Great Britain [98]
c) Energy Storage participation in different markets

Regarding the current legislation framework in EU, ESS are classified as generation assets in the electricity
markets. According to Directive 2009/72/EC generation assets have very broad definition as “assets that
produce electricity”. The justification for this classification is the fact that storage technologies can generate
electricity from a technical perspective. However, the ESS cannot generate positive net flow of electricity and
this is the main argument for introducing new classification [100].
With the current classification of ESS as generation they can participate in the wholesale, balancing services
and capacity markets. The market participation of small-scale distributed storage is dependent on its
aggregation.
Wholesale markets
In scope of the current classification the participation of ESS in the wholesale electricity market is related to
moving electricity from periods of low demand to periods of peak demand (price arbitrage). Since these
demand variations occur on daily, weekly and seasonal level, only storage technologies with long storage
duration (as PSH) will have significant benefits from participation on wholesale market.
This claim is supported by several results of research in this area. For example, [93] presents investigation of
the economics of energy storage in the German electricity and reserve markets. In this paper it is shown that
for PSH 25% of the life cycle costs can be covered from the revenues of price arbitrage, while for other storage
technologies this value is not higher than 8%. Similar research for Finland [94] provided comparable results
regarding the income from participation on the wholesale spot market.

The small-scale distributed generation for which VSP product is designed covers storage technologies with
shorter duration and therefore its participation in the wholesale market can cover only a small fraction of its
life cycle costs.
Balancing service markets
Participation of ESS in the balancing service markets is related to provision of capacity and energy for
frequency containment and restoration (primary and secondary frequency regulation). The provision of these
services can be significant source of income for storage technologies with fast response (as battery storage
technologies) that usually have short storage duration.
For example, [93] shows that the participation of NaS and Lead-acid batteries in the primary and secondary
reserve markets, for the case of Germany, will provide revenues that altogether with the revenues from the
wholesale market will be sufficient to cover the life cycle costs. For the case of Finland [94], the calculated
revenues are not sufficient to cover the life cycle costs, since the volatility in the Nordic electricity is much
less pronounced than in Germany and much more flexible generation is present in this market [97]. Another
research for the participation of energy storage in GB market mechanisms [90] confirms the claim that the
income generated by participation in the balancing market is greater than the income from energy arbitrage
on the wholesale spot market. It is important to mention that these studies include optimization of the cycle
numbers that makes the highest possible revenues for the batteries and consider 100% accurate price
forecast. Nevertheless, a conclusion that for battery storage technologies a significant amount of income can
be generated by its participation in the balancing markets, can be drawn.
In a research on provision of frequency restoration reserves in Germany and the Netherlands [96] it is shown
that the Dutch system is more suitable for ESS due to the possibility of withdrawing bids one hour before
commitment. It limits the risk of commitment breach, the largest concern in the German balancing market.
Also, the participation without firm contracts is of a great benefit for the energy storage participation in
balancing markets. This so called ‘passive balancing’ is currently the most adequate option for ESS.
Capacity market
Another important aspect, where ESS could provide value, is security of supply [102]. Increasing deployment
of weather-dependent renewables has led to the introduction of new electricity markets to ensure security
of supply, principally through the introduction of capacity markets. Such market is established in the UK and
some other countries in the world. However, some experiences of introducing capacity markets, for example
in West Australia, resulted with high prices that may be interpreted as failure of the capacity mechanism
[100]. Germany has not implemented a large-scale capacity mechanism on the grounds that it is expensive
and inefficient, rather relying on the power market.
The capacity market is another place where the value of storage can be expressed, and additional income
can be acquired. The ESS that are included in a capacity contract must deliver certain amount of energy
during periods of system stress. The capacity can be requested at any time during the contracted period.
According to [100], such an ‘open-ended’ obligation is a key issue for most storage providers since their
discharge duration is necessarily limited to the maximum charge. The storage device must remain fully
charged for a long period of time and suffer parasitic losses. If the storage device were entirely discharged
before the end of the warning period (four hours before anticipated stress event), its provider would be
subject to a heavy penalty. An alternative approach of establishing contracts for defined time limits might
provide more secure revenue stream and improve the integration of EES within the system.
One challenge for storage providers is that they can only participate directly in the capacity market if their
capacity is at least 2 MW, unless they bid into the market alongside other generators through an ‘aggregation’
service [100].
d) Aggregation of distributed storage

The aggregation of small distributed storage is a condition for its successful participation in the regional
markets. The role of the aggregator can be expressed in three main points:

1) To identify and aggregate the potential of individual small storage units to provide a service/product
that is traded on the market;
2) To offer its services/products to different market participants in the organized markets or through
bilateral contracts and
3) To remunerate each participant in the aggregation i.e. to provide transparent and fair distribution of
the income from the services sold on the market.
The aggregator pools flexibility from customers and converts it into electricity market services, for example
for use by the TSO, DSO and/or Balancing Responsible Party. The aggregation of flexibility includes storage
and renewable energy units with flexibility in production as well as demand. Aggregation is essential to
enable market participation of distributed resources. The need of an aggregator as a market player is
rationalized by the fact that small and medium companies already participating in the market are usually not
able to create their own profitable business models for the purpose of trading their flexibility [101]. An
aggregator can offer that flexibility as a service to a customer or other market player. Its business model is
based on the flexible portfolio of its own users and the ability to optimize it for increasing its own and the
profit of its aggregated users. The role of the aggregator gains significance with the increased integration of
variable energies, so it should also evolve following the market development and at the same time.
Aggregation can be provided by electricity suppliers, as well as independent aggregators. Enabling both types
of actors to exist and compete in the market is significant for market competition. In any case, the roles and
responsibilities of the aggregator should be clearly defined.
e) Regulatory and market barriers

The full potential of the energy storage technologies and its cost effectiveness can be achieved by providing
a number of different services. These services are not only related to electricity balancing and participation
on a day-ahead or intra-day electricity markets, but to other so-called non-energy benefits that are beyond
energy savings, such as integration of renewables and avoided emissions. ESS can also provide services for
transmission and distribution grid relief and are identified as a key technological component that can
transform the current structure and operation of the power grid [100], [102], [103].
A multifunctional operation of a storage technology is always problematic from a regulatory point of view
whenever the operation is covering two main areas of the energy system: the competitive area including
spot and reserve markets, and the regulated area of the grid business [104]. For distributed storage additional
regulatory barriers exist regarding its aggregation.
Regulatory and economic barriers limit feasibility of the storage and its deployment. This, in turn, limits the
applications and sources of revenue of energy storage systems. The main barrier is the poorly defined status
of energy storage as generation that limit its usage. Furthermore, energy storage faced many different
regulatory frameworks across EU Member States, with market inefficiency as a result of this fragmentation.
There is no consistency amongst the Member States on the way storage is treated in the energy system [102].
Also, a purely market-based system does not provide price signals for the full range of energy storage services
such as transmission and distribution relief, and it currently is incapable of pricing all energy services [103].
This definition of energy storage as generation implies imposing of double transmission and distribution
tariffs (for charge and discharge), which reduce its competitiveness. As ESS can increase or reduce network
congestion, depending on the network design and the storage location relative to generation and demand,
these network charges could be justified in some circumstances but are unlikely to be justifiable in a well-
designed system. In the UK, storage providers connected at distribution level must pay double Distribution
Network Use of System charge and storage units with capacity lager than 100 MW must also pay Transmission
Network Use of System charge. Double transmission/distribution network tariffs for storage exist in other EU
countries as Austria, Belgium and Greece, however a number of other member states do not impose grid
fees to storage plants [100], [102]. Network fees should provide stability and predictability that allows
investments in long-term assets, like storage facilities [102].

Another regulatory barrier is the in usage of energy storage for optimization in the operation and planning
of transmission and distribution networks [100], [103]. Regarding this, the grid operators should be allowed
to recover the costs associated with the services procured from storage operators if those were necessary
for efficient system operation. Furthermore, storage operators should be allowed to provide multiple
services to system operators, e.g. for DSO congestion management or TSO balancing [102].
The non-support of storage deployment by specific subsidies also presents as barrier. For example, in
ancillary service markets in UK both network reinforcement and flexible generation are currently cheaper
than storage for most system and electricity market requirements [100]. It should be noted that low carbon
electricity generators have required and received subsidies in order to compete. Same challenges face the
energy storage.
f) Market perspectives
Storage operators should also be allowed to participate in other commercial activities, and to be
remunerated for their contribution to decarbonisation of other economic sectors. The medium and long-
term storage solutions, needed for flexibility in a low-carbon energy system, could be better incorporated
into the markets with new standardised market products [100], [102].
Proposals for mitigation of barriers regarding distributed storage are identified in [102]. These proposals
include encouraging DSOs and building a framework that will enable them to use services from distributed
energy resources such as demand response and energy storage, based on market procedures, in order to
efficiently operate their networks and avoid costly network expansions. At the demand side, distributed
storage could stabilise the local system, compensating for the variability of RES and potentially operating
based on price signals. These distributed storage assets could be used in the markets, including through
aggregators. Distributed storage behind the meter could interact with the markets through demand response
on retail markets together with other measures.
Also, storage should be considered as a relevant option in grid planning, both at transmission and distribution
level [100], [103].
In [102], the following principles supporting the market development for energy storage are stated:
• Energy storage should be allowed to participate fully in electricity markets;
• Energy storage should participate and be rewarded for services provided on equal footing to
providers of flexibility services (demand response, flexible generation and adaptation of
transmission/distribution infrastructure);
• Energy storage as an enabler of higher amount of variable RESs could contribute to energy security
and decarbonisation of the electricity system or of other economic sectors;
• The cost-efficient use of decentralised storage and its integration into the system should be enabled
in a non-discriminatory way by the regulatory framework.
The new legislative proposals for market design in the context of the Clean energy for all Europeans package
support the cost-efficient use of energy storage solutions, covering energy markets aspects, the regulatory
framework, system planning and specific technical aspects. The regulatory framework should aim to create
an equal level playing field for cross-border trading of electricity storage. The following principles are
proposed in [105]:
• The regulatory framework needs to provide clear rules and responsibilities concerning the technical
modalities and the financial conditions of energy storage;
• It must address barriers preventing the integration of storage into markets. It should guarantee a
level playing field vis-à-vis other sources of generation, exploit its flexibility in supplying the grid,
stabilise the quality and supplies for RES generation. This will require new services and business
opportunities linked to the deployment of electricity storage solutions;

• The framework should be technology neutral, ensuring fair competition between different
technological solutions (not picking a winner);
• It should ensure fair and equal access to electricity storage independent of the size and location of
the storage in the supply chain;
• It should ensure medium-term predictability in the investment and financial conditions (taxes, fees
etc), enabling favourable conditions for all kinds of storage, particularly micro-storage (home and
district level);
• It could help improve the business/economic model for energy storage. The principal domains where
interventions are needed relate to ancillary services and the grid tariff. For example, the grid tariff
should be based on the principle of cost causality: if an energy storage system is systematically using
the grid during off-peak periods and not during peak periods, it should not generate grid investment.
Thus, the introduction of a time component in grid tariffs could take account of the part of grid
investment due to energy storage.

7 TECHNICAL REQUIREMENTS OF THE VSP PRODUCT AND SCENARIOS IN

CROSSBOW
In order to identify future possible scenarios of availability and use of different distributed energy storage
technologies, this chapter presents an overview of the technical requirements of a VSP in HLU5-related
CROSSBOW products. Technical requirements of all 9 CROSSBOW products are already defined in deliverable
D2.1 CROSSBOW project requirements definition, so authors used this information to provide condensed
report. Beside technical requirements, several possible scenarios of availability and use of distributed energy
storage technologies are presented as well.
7.1 CROSSBOW PRODUCTS INVOLVED IN VIRTUAL STORAGE PLANTS (HLU5)

Based on deliverable D2.3 CROSSBOW demo clusters formal analysis, the list of CROSSBOW products involved
in HLU5 is presented in Table 22. The leading product in HLU5 is the CROSSBOW Virtual Storage Plant
platform necessary to improve quality of supply and the cross-border power transfers at regional level. HLU5
will also make use of the CROSSBOW Regional Storage Coordination Centre to support storage units to better
monitor and control them, as well as to maximize the performance of distributed storage units. Wholesale
and Ancillary Market will be one of the main enablers for VSP, providing novel market design that can enable
the use of VSP and the coordination of VSP units to support grid operation. Wide Area Monitoring and
Awareness System (WAMAS), as a monitoring and control platform, is also an essential product for network
condition awareness. Finally, DSM providers can be scheduled in combination with VSP units based on the
specific state in the network, as in some cases both types of flexibility sources will have to be activated.
Table 22 CROSSBOW products involved in HLU5

No Products
1 CROSSBOW Virtual Storage Plants
2 CROSSBOW Regional Storage Coordination Centre
3 CROSSBOW Wholesale and Ancillary Market toolset
4 CROSSBOW WAMAS system
5 CROSSBOW Regional DSM integration platform
Short description of mentioned products, based on deliverable D2.1 CROSSBOW project requirements
definition, is presented in following sections.
CROSSBOW VIRTUAL STORAGE PLANTS (VSP)
The CROSSBOW VSP will include control algorithms for the optimal coordination of available energy storage
units with the aim of providing frequency support, voltage regulation and congestion management. The
CROSSBOW VSP will be able to send charge/discharge and control commands. System Operators will be able
to use the CROSSBOW VSP as primary or secondary reserve or in congestion management. Energy producers
and retailers will be able to use the CROSSBOW VSP to mitigate imbalance, store energy surplus and provide
bids for services on the market
CROSSBOW REGIONAL STORAGE COORDINATION CENTRE (STO-CC)
Storage units require specific real-time monitoring and control, especially when they become relevant to the
operation of transmission networks. The Regional Storage Coordination Centre (STO-CC) will be developed
to provide real-time supervision and control, incident management, seamless interaction with system
operators and optimisation of installations. The focus will be on hydro and chemical storage where the first

one is largely adopted. Chemical storage (batteries) will reach high penetration in Europe in the coming years
and provide support in frequency and voltage regulation.
CROSSBOW WHOLESALE AND ANCILLARY MARKET TOOLSET (AM)
The balance between electricity generation and consumption within their control areas must be established
by TSOs. The CROSSBOW wholesale and ancillary market (AM) tool will be configured to simulate the
exchange of demands and offers of both, energy and capacity not only within one country but also among
countries through cross-border exchanges. TSOs need different types of reserve capacities for frequency
support as well as balancing energy which could be offered through system platforms. Currently, there is idea
for two independent platforms:
- System market platform for frequency restoration reserves (aFRR and mFRR);
- Balancing Market platform conducted in intraday continuous mode.
The difference between both platforms would be in the timings, products and design since the system market
platform for aFRR and mFRR would be much more complex and here the knowledge and ideas from current
ongoing pilot ENTSOE and TSO’s projects regarding ancillary services would be used. On the other hand, the
Balancing Market platform would be conducted in a manner of intraday continuous trading so we would
cover the wholesale market segment. Also, it will be demonstrated and explored how blockchain ledger and
smart contracts could be explored to provide immutable storage, decentralization and automation.
CROSSBOW WAMAS SYSTEM (WAMAS)
WAMAS system consists of an advanced real-time central system and number of time synchronised
acquisition units. The system is developed for real-time data exchange between TSOs, DSOs, RESs and storage
devices. It allows a providing of information about storage availability and congestions. WAMAS acquires
data from: PMUs, RTUs, IEDS, Smart meters and SCADA. Data processing concept is based on two processing
parts. The first part will be WAProtector as the central data concentrator with real time data analysis. The
second part will be external services, which can run on different platforms as Matlab.
Depending on the required data resolution, real-time analyses are divided into two levels:
- high resolution data in range between 20-100 ms used for WAMS/WAMPAC functions;
- medium and low-resolution data in range of seconds/minutes used for state estimation, forecasting,
and voltage.
CROSSBOW REGIONAL DSM INTEGRATION PLATFORM (DSM)
Regional DSM integration platform is the enabler for coordinated DSM programs at a single TSO or multiple
TSOs level. The platform is used in order to facilitate cooperation, interaction and data exchange between
the TSOs and DSOs. The main information exchanged will be the amount of flexibility from the accessible
DSM providers, which can be single or aggregated controllable users at TSO or DSO level. This interface will
provide a platform that informs TSOs about the amount of available energy from accessible controllable loads
and the availability of services that can be offered by the DSOs to TSOs.
7.2 TECHNICAL REQUIREMENTS

Total of 69 technical requirements, provided in deliverable D2.1 CROSSBOW project requirements definition,
that cover 5 CROSSBOW products involved in finalisation of HLU5, are presented in Table 23. Fulfilment all
of them is very important in order to satisfy necessary standards and state of the art engineer practices.
Instead to focus on all of them individually, we tried to synthesize all 69 requirements based on their types.
In that way, by reducing the number of requests that should be fulfilled, we tried to avoid situation where
some of the requests are neglected.

Table 23 Summary of HLU5 product requirements

Requirement ID Description Type
VSP_001 The VSP requires historical data, including storage and
generation measurement, storage usage profiles, state of Data requirements
charge, etc.
VSP_002 The VSP requires network topology data. Data requirements
VSP_003 The VSP requires the VSP units should be connected to the Functional
power network. requirements
VSP_004 The VSP requires real time monitoring data for each VSP Functional
unit. requirements
VSP_005 The VSP requires real-time control for each VSP unit. Functional
requirements
VSP_006 The VSP requires that sampling rate of the VSP monitoring
systems should be adequate for steady-state and dynamic Functional
performance monitoring (from less than one second to requirements
several seconds).
VSP_007 The VSP monitoring data should be collected at
Data requirements
ROC/TSO/dedicated control centre.
VSP_008 The VSP platform should be a decision-making entity, with
software processing (in real-time) information about the Functional
network conditions and available flexibility/status of the requirements
VSP units.
VSP_009 The decision information produced by the VSP platform is Functional
dispatched to relevant VSP units. requirements
VSP_010 The available capacity and flexibility of VSP storage
Functional
resources should be above a certain threshold, defined by
requirements
the network service these resources are providing.
VSP_011 Information collection from VSP storage units should
Security requirements
comply with data privacy and security requirements.
VSP_012 Automatic control of VSP assets has to be provided in cases
Functional
where fast response is required (for example for fast
requirements
frequency regulation).
VSP_013 VSP availability will have to be reported by VSP providers in
advance, e.g. minutes ahead, day ahead, on a seasonal Data requirements
basis, depending on intended service to be provided by VSP.
VSP_014 VSP should integrate the VHP ready [107] standard. The scope of the
VHP is a standard for creating Virtual Power Plants (VPPs) product
VSP_015 VSP shall be closely integrated with the STO-CC. Operational
requirements
VSP_016 The VSP must have an interface to each market it shall Functional
provide services to. requirements

VSP_017 The VSP must have a module to forecast the flexibility of Functional
connected storage systems. requirements
VSP_018 The VSP must provide an interface for TSOs to request Functional
voltage/frequency/congestion support. requirements
STORAGE_001 The STORAGE requires historical data, including storage and
generation measurement, storage usage profiles, state of Data requirements
charge, etc.
STORAGE_002 The STORAGE requires network topology data. Data requirements
STORAGE_003 The STORAGE requires the STORAGE units to be connected Functional
to the power network. requirements
STORAGE_004 The STORAGE requires real time monitoring data for each Functional
STORAGE unit. requirements
STORAGE_005 The STORAGE requires real-time control for each VSP unit. Functional
requirements
STORAGE_006 The STORAGE requires that sampling rate of the STORAGE
monitoring systems should be adequate for steady-state Functional
and dynamic performance monitoring (from less than one requirements
second to several seconds).
STORAGE_007 The STORAGE monitoring data should be collected at
Data requirements
ROC/TSO/dedicated control centre level.
STORAGE_008 The STORAGE platform should be a decision-making entity,
with software processing (in real-time) information about Functional
the network conditions and available flexibility/status of requirements
the STORAGE units.
STORAGE_009 The decision information produced by the STORAGE Functional
platform is dispatched to relevant STORAGE units. requirements
STORAGE_010 The available capacity and flexibility of STORAGE resources
Functional
should be above a certain threshold, defined by the
requirements
network service these resources are providing.
STORAGE_011 Information collection from STORAGE units should comply
with data privacy and security requirements.
STORAGE_012 Automatic control of STORAGE assets has to be provided in
Functional
cases where fast response is required (for example for fast
requirements
STORAGE_013 STORAGE availability will have to be reported by STORAGE
providers in advance, e.g. minutes ahead, day ahead, on a
Data requirements
seasonal basis, depending on intended service to be
provided.
AM_001 AM shall be a decentralized system. The scope of the
product
AM_002 AM shall provide an API for other systems to integrate. Functional
requirements

AM_003 AM should be based on micro-service architecture. Functional

requirements
AM_004 AM shall be Scalable. The scope of the
product
AM_005 Each market participant (registration) should be validated Functional
and confirmed. requirements
AM_006 AM shall be Integrated with an Accounting system. Functional
requirements
AM_007 AM shall use blockchain technology. Functional
requirements
AM_008 AM shall provide a secure and efficient Identity and Access
Management.
AM_009 AM shall support the Application supports exporting of data Functional
in structured format. requirements
WAM_001 The WAMAS system should integrate different drivers. The scope of the
product
WAM_002 WAMAS should provide a mechanism to query or push The scope of the
information. product
WAM_003 WAMAS must be able to ingest data from multiple source Operational
types. requirements
WAM_004 WAMAS should support the ingestion of data through M2M Operational
technologies. requirements
WAM_005 WAMAS should feature a database to store the measures Operational
received. requirements
WAM_006 WAMAS database should be scalable. Performance
requirements
WAM_007 WAMAS should feature a state estimation algorithm to Operational
identify and predict grid status. requirements
WAM_008 WAMAS should automatically trigger alerts based on rules. Operational
requirements
WAM_009 WAMAS may use machine learning techniques and models Operational
to trigger alarms. requirements
WAM_010 The WAMAS must have a responsive web UI. Usability and humanity
requirements
WAM_011 The WAMAS GUI should depict the real time state of the Usability and humanity
system. requirements
WAM_012 The WAMAS GUI should allow querying the historical value Usability and humanity
of the measures stored. requirements
WAM_013 The WAMAS GUI should allow defining rules for alerting. Usability and humanity
requirements

WAM_014 The WAMAS system should send identified alarms to Usability and humanity
different destinations based on a configuration. requirements
WAM_015 WAMAS should feature an API to allow external systems Operational
access the data. requirements
WAM_016 WAMAS API access should be secured. Security requirements
DSM_001 The DSM requires historical data, including load and
Data requirements
generation measurement, DSM unit loading data, etc.
DSM_002 The DSM requires network topology data. Data requirements
DSM_003 The DSM requires the DSM units should be connected to the Functional
power network. requirements
DSM_004 The DSM requires real time monitoring data for each DSM Functional
unit. requirements
DSM_005 The DSM requires real-time control for each DSM unit. Functional
requirements
DSM_006 The DSM requires that sampling rate of the DSM monitoring
systems should be adequate for steady-state and dynamic Functional
performance monitoring (from less than one second to requirements
several seconds).
DSM_007 The DSM monitoring data should be collected at
Data requirements
ROC/TSO/dedicated control centre.
DSM_008 The DSM integration platform should be a decision-making
entity, with software processing (in real-time) information Functional
about the network conditions and available requirements
flexibility/status of the DSM units.
DSM_009 The decision information produced by the regional DSM Functional
integration platform is dispatched to relevant DSM units. requirements
DSM_010 The available capacity and flexibility of DSM resources
Functional
should be above a certain threshold, defined by the
requirements
network service these resources are providing.
DSM_011 Automatic control of DSM assets has to be provided in cases
Functional
where fast response is required (for example for fast
requirements
DSM_012 DSM availability (load flexibility) will have to be reported by
DSM providers in advance, e.g. minutes ahead, day ahead,
Data requirements
on a seasonal basis, depending on intended service to be
provided by DSM.
DSM_013 Information collection from DSM/storage units should
comply with data privacy and security requirements.
In order to provide more detailed analysis of described requirements, type “Functional and data
requirements” was split in two separate categories: “Functional requirements” and “Data requirements”.
Including rest remaining types, all product requirements are divided in 7 different categories:
- Functional requirements;

- Data requirements;
- Operational requirements;
- Security requirements;
- The scope of the product;
- Usability and humanity requirements;
- Performance requirements.
Based on their number of occurrences, functional requirements are most important technical requirements
regarding HLU5 products. Functional requirements for VSP, STO-CC and DSM product refer to following tasks:
- connection of mentioned product to the power network;
- enabling real time data monitoring and control for specific product units;
- obtaining required sampling rate of monitoring system;
- creation of decision-making integration platform;
- dispatch of decision information produced by the regional integration platform to relevant product
units;
- obtaining capacity and flexibility of resources above required threshold;
- automatic control of platform assets has to be provided in cases where fast response is required.
Additionally, there are some functional requirements that refer to following tasks:
- regarding VSP: creation of specified interfaces and modules;
- regarding AM: establishing API, micro-service architecture, accounting system, blockchain
technology, etc.
Second essential group of technical requirements are data requirements among HLU5 products. Functional
requirements for VSP, STO-CC and DSM product refer to following tasks:
- acquisition of historical data, including load and generation measurement, DSM unit loading data,
storage usage profiles, state of charge, etc.
- acquisition of network topology data;
- providing that monitoring data should be collected at ROC/TSO/dedicated control centre;
- confirmation that availability will have to be reported by providers in advance, e.g. minutes ahead,
day ahead, on a seasonal basis, depending on intended service to be provided.
Operational requirements for HLU5 products are dominantly dedicated to WAMAS tasks, such as:
- availability to ingest data from multiple source types through Machine-to-machine (M2M)
communication technologies;
- implementation of database to store the measures received;
- design of state estimation algorithm to identify and predict grid status;
- automatic triggering of alerts based on rules, using machine learning techniques and models;
- develop of API to allow external systems access the data.
Additional operational requirement emphasizes that VSP shall be closely integrated with the STO-CC.
Security requirements cover 3 main CROSSBOW products of HLU5 – VSP, STO-CC and DSM, stating that
information collection from product units should comply with all data privacy and security requirements.
Additional security requirement is that AM shall provide a secure and efficient Identity and Access
Management.

Requirements regarding the scope of the products cover 3 products with following requests:
- AM shall be a decentralized and scalable system;
- VSP should integrate the VHP ready [107] standard;
- WAMAS system should integrate different drivers and provide a mechanism to query or push
information.
Usability and humanity requirements are dedicated exclusively to WAMAS product, with following tasks:
- creation of responsive web UI;
- enabling that GUI depict real time state of the system;
- querying the historical value of the measures stored;
- defining rules for alerting;
- sending identified alarms to different destinations based on a configuration.
Finally, only one performance requirement is defined, stating that WAMAS database should be scalable.
7.3 POTENTIAL FUTURE HLU5 SCENARIOS

The increase of RES generation causes that grids partly reach their limits. In order to cover a high RES
penetration, compensate low generation periods and maintain grid stability, storage technologies and tools
for a coordinated operation are necessary. Energy storage systems are already integrated in European power
network on small scale. For instance, solar battery storage systems are deployed on residential level in
countries like: Germany, Australia, Italy and UK. This trend will continue in the coming years. On the other
side, large-scale utility storage systems are more and more common and often installed next to wind farms
or solar parks, with the main purpose to store energy of the renewables and stabilize the grid.
Currently, the most common types of storage are PSH and BESS. PSH can be used in various applications and
it already plays a vital role in the energy system in Southeast Europe. For instance, PSH is already used for
reactive power and voltage control as well as for frequency restoration reserve, black-start service and island
operation. Whereas the deployment of PSH is often limited to availability of technically feasible sites,
environmental concerns and financial uncertainties, BESS are flexible and can be placed at almost every
location in the grid. Moreover, due to modular system designs the power and energy capacity of the battery
can be adopted to the requirements on site. One major advantage of BESS compared to PSH is the faster
response time. Whereas PSH systems need a couple of seconds up to some minutes to switch from one
operation mode to another, batteries can react within milliseconds. Coordination among different types of
storage is very important and it will be provided by the STO-CC and VSP products.
After performing analysis regarding utility of HLU5 CROSSBOW products (with an emphasis on STO-CC and
VSP), based on deliverable D19.1 Market analysis Smart Grid Services and products, six possible scenarios
could be foreseen in the future:
The first scenario refers to the contribution of frequency control. FRR was identified as the application with
the second highest potential for the VSP considered by HOPS, TRANS and ADMIE. This kind of service was
also identified as the most relevant one for the STO-CC. According to the TSOs, STO-CC could be used for
Frequency Restoration Reserve in Croatia, Bosnia & Herzegovina, Romania and Greece. Since most existing
storage technologies can react fast on power requests, they can also be used for FCR.
The second scenario is related with black-start service, island operation, keeping the grid quality stable as
well as data collection and monitoring. Since a black start might require a certain minimum power the
aggregation of storage systems by the VSP is of benefit. In this case, the location of storage units is important
in order to provide more efficient support to the system. Also keeping or even enhancing the grid quality,
especially in case of islands mode operation, can be eased through a coordinated operation of storage
systems. However, since island grids are usually not as stable as the interconnected grid the requirements

on the hardware and also on the software might be higher. It also has to be ensured that grid forming devices
are in place. Since the distributed assets are connected at different locations of the grid, a lot of information
of the current grid status (voltage, frequency) at different places can be gathered and concentrated at one
point. However, data collection from distributed systems must be always carefully handled since personal
data of end-users might be involved as well.
The third scenario refers to dispatching measures. The VSP can also be used for congestion management and
frequency support as well as providing energy from mFRR. An aggregated pool of storage devices can have a
higher influence than single devices. But, in order to implement these measures, integration of regional
WAMAS system is necessary. WAMAS system will provide information about the current status of the power
system and alarm if power system is close to the operation limits. Moreover, requirements for automatic
oscillation detection and oscillation source localisation was expressed by several TSOs. Additionally, the
WAMAS should perform the corrective/remedial actions to ensure the reliable operation.
The fourth scenario applies to voltage control. Since distributed storage devices within the VSP are connected
to the low voltage and medium voltage grid just a direct influence of these grid levels is possible. The
placement of the associated storage devices needs to be considered, since the voltage varies depending on
the location. A direct support of the transmission grid is just possible through large generation units and
storage devices that are connected to it. However, these units would rather be coordinated by the STO-CC
than the VSP.
The fifth scenario addresses Day-Ahead and Intraday markets. Through a coordinated energy management
of storage units, STO-CC could also support the increase of RES penetration and avoid RES curtailment.
Storage technologies can shave surplus peaks of renewable generation and provide power when generation
is low. This is related with energy arbitrage and allows buying energy in periods of low price and selling in
period of high price. This service can surely be provided by VSP as well. VSP was clearly identified as an
enabler for supporting distribute storage on power markets. The support of battery storage in order to
maximize performance and profit through STO-CC is seen from TRANS and EMSs. To make the system
efficient, it is necessary that interfaces to other management tools exist so that RES integration and operation
can be optimized.
Finally, sixth scenario covers coordination of storage (VSP) with DSM application. Modern grids have
increasing need for guaranteed flexibility which can be achieved with battery storage in one way, but also
through consumers’ flexibility to adapt their consumption or with the flexibility of electric vehicles that can
modify their charging time. Because DSM, controllable consumers are becoming very important a part of the
power system. The main limitation for the large-scale adoption of DSM has been the challenge of
coordinating thousands or even millions of distributed systems to operate in a coordinated fashion and
reduce power grid demand effectively. However, with Internet connections expanding to all types of devices,
there is a possibility to build a common platform on which utility companies could build DSM control systems.
7.4 MARKET PARTICIPATION OF CROSSBOW VSP

As it can be concluded from the previous subchapters cost efficient operation of ESS can be achieved only by
enabling its usage for multiple purposes in order to optimally contribute to increased efficiency in the power
system operation. Also, support mechanisms are envisaged so that the storage technologies can achieve cost
effectiveness. Therefore, enabling participation in different existing and future markets is crucial for the
CROSSBOW VSP product and the storage units that will be controlled by it. Additionally, the market
participation of small storage units is conditioned by its aggregation, similarly as small generation, demand
side management etc.
The VSP product is envisaged as platform containing control algorithms for optimal coordination of available
energy storage units with the purpose of providing frequency support, voltage regulation and congestion
management. While the main functionality of the product is to optimize the operation of multiple small
storage units, the main aim of the product is to provide several different services. These services should be

considered as bids on multiple different types of markets. Although, these services are so different, as it can
be concluded from the previous subchapters, its provision from the technical point of view can be considered
as producing positive or negative injections of active/reactive power in different nodes of the network. These
power injections can provide decrease of load in periods of high prices on the day-ahead and intra-day
markets and its transfer to periods of low market price (price arbitrage). The power injections can provide
services of frequency regulation i.e. balancing energy. In this case the speed of activation, which is
determined by the storage parameters is important, while the location limitation is only related to the load-
frequency control area. The congestion management and voltage support services that can be provided by
are also related to injection of active/reactive power, but in this case the location is of greater importance.
The design of the VSP product i.e. its requirements should satisfy certain conditions that will enable efficient
market participation of the storage units controlled by VSP. These requirements are related to collection of
necessary specific types of data with certain frequency. Provision of services by the VSP on the market can
be considered as a process of three steps.
In the first step a set of bids to different markets should be created. As it was already explained VSP should
provide bids to markets for different products and services. These bids will depend on the type, and the
status of the individual storage units coordinated by VSP. This step is depicted on Figure 34.
Figure 34 Provision of bids to markets for different products

The process requires collection of data for the status of each storage unit that is coordinated by the VSP
product. The status of a storage unit is related to its availability that includes the availability of the network
(distribution and transmission) where the unit is connected. If storage units from different countries/load-
frequency control zones are coordinated by VSP check of availability and reservation of cross-border/cross-
zonal transmission capacity is needed. In addition, the essential part of the status of each storage unit is its
state of charge. The VSP product should possess information on the type and technical characteristics of each
storage unit that is coordinated and may use profiles of types of storage units (database). Based on the status
and the stored data offers on different markets can be provided for given share of participation on markets
for different products. Extensive market analyses are needed in order to determine the optimal share of
participation on markets for different products. For these analyses historical data on the prices from these
markets and consideration of the technical characteristics of the coordinated storage units is required.
If some of these bids are accepted, the second step will include providing control actions that will enable
delivering of the accepted services. This step is presented on Figure 35. Optimization algorithms for the
means of activation of individual storage units in order to provide certain service are to be implemented by
the VSP product. From the market point of view, delivery of the services that were offered and accepted is
essential. That encompasses provision of the required amount of active/reactive energy at a particular
moment with the required ramping speed, profile and location.

Figure 35 Actions to deliver services for the accepted bids

The third step includes financial settlement and distribution of the gained revenue to the owners of the
storage units. This step requires data from the measurements of the response of each storage unit for the
delivery of the offer. A principle for distribution of the revenue based on this data should be adopted and
implemented.
7.5 MARKET PARTICIPATION IN THE REGION OF SOUTH-EAST EUROPE

Regarding scenarios for market participation of the CROSSBOW VSP product in the region of South East
Europe the current state shows that significant number of small storage units that could be coordinated by
the product do not exist at the moment. In addition, the development of single regional organised electricity
markets is not yet finished, and the development of balancing markets is at early stage. This means that
practical implementation and use of the product at the moment is not possible. Nevertheless, practical tests
in the framework of CROSSBOW project can be conducted in laboratory.
The findings from the D1.1 Legislation and Regulatory Frameworks of CROSSBOW show that “The region
lacks regulation related to energy storage, except in some of the countries (Bosnia & Herzegovina, Bulgaria
and Serbia) where connection rules related to PSH exist or the existing connection rules are adequate to
allow for their connection. Connection rules related to storage are to be changed in near future in Bulgaria
and Romania. In Greece, storage is mentioned only as part of hybrid RES plants in non-connected islands.
“This means that regulation for connection of small storage units would be the first step enabling their wider
use. In addition, there is lack of rules that regulate ownership of storage, procurement of storage by TSO/DSO
and support measures for storage. Existing rules on PSH in Serbia only outline that these storage units can
be used for market and network security purposes. In Bulgaria, TSO and DSOs are not allowed to own storage
assets. However, storage units can participate in the balancing market. In Croatia, PSH is allowed to
participate in the market to provide tertiary reserve in both directions. It is expected regulation on storage
to be adopted in Romania, along with support measures for promotion of the use of storage.
Since the countries are either Member States of EU or have signed the Energy Community Treaty the EU
regulations should be implemented and transposed. Therefore, the market perspectives that were described
in the subchapter 6.1 f) are valid also for the region of South East Europe.
In the scope of the use-cases the CROSSBOW VSP product can provide bids to the System market platform
for frequency restoration reserves (aFRR and mFRR) and Balancing Market platform conducted in intraday
continuous mode.

8 CONCLUSION
To achieve the EU target of at least 27% renewables in the generation mix, EU countries are working hard to
make EU a global leader in renewable energy. Under different envisaged scenarios, the general trend shows
an increase in demand and in RES penetration, along with reduced nuclear and coal generations and
considerable increases in renewable generations. In the South East European region, the existing RES
penetrations are still lower compared to countries with leading RES generations in Europe, such as UK and
Germany. However, ambitious expansion can be foreseen in these regions, considering policy and suitable
terrain conditions for renewable exploitation. Hydro power still represents the largest portions of RES mixes
in the consortium countries. Since 2017, the increase of non-dispatchable renewables, e.g. wind and PV, is
higher than the one related to hydro power and biomass, which can be dispatched easily. Because of that,
power generation systems are required to undergo significant structural changes to assure continued
reliability and stability.
Energy storage technologies are regarded as an interesting solution, which guarantees smooth transitions
from power networks with conventional structures to deregulated systems integrated with a large number
of renewable and distributed generations. The value of energy storage systems is well understood from
technical perspectives. In this deliverable, the appropriate categorization is illustrated considering different
power and energy ratings of energy storage technologies. Storage technologies under different categories
are suitable to provide specific services to the networks, ranging from dynamic supports to energy
management. A portfolio of distinct storage technologies needs to be engaged in order to deliver various
services, which is of benefits for both of the grids and storage owners.
From another point of view, the discussions regarding storage technologies cover bulk and distributed
storage technologies, and most TSOs have experience operating bulk storage systems while those in
distributed storage are quite limited. PSH is the most mature storage technology which also contributes to
the renewable generation mix. Modifications can be also adopted to the existing hydro power plants with
additional pumped modes, so power surplus can be stored in the PSH using reserve operations of generators.
However, the potential of PSH is restricted because of the geographical requirement and network
deregulations. Distributed storage with relatively small capacity is a promising alternative solution. It is
noticed that distributed storage placed at the edge of power networks and closed to end-users can provide
more benefits to the system and storage owners. Appropriate aggregation is required, such that small-scale
storage facilities at distribution levels can help maintain stability and provide flexibility in their own territory,
and offer dynamics supports and energy shifting to the transmission networks.
Practices of Greece and Serbia, as indicated by the corresponding storage assets owners, PCC and EPS
respectively, further illustrate the current statuses of storage development in South East Europe. Although
hydro power plants and PSH plants are still being deployed in recent years, as included in the sustainable
energy plans and providing required flexibility in Greece, the several emerging BESS facilities are slowing
down the development of large PSH. However, most of these distributed storage technologies are being
demonstrated at isolated parts of the networks. Guidelines for availability and suitability of different
technologies in specific scenarios are still not established. It is expected that in Serbia, large-scale centralized
PSH will continue serving as main storage facilities in the near future. Such storage facilities are likely to
commission near large renewable power plants solving integration issues of RES. Although most TSOs have
expressed their interests in emerging storage technologies, significant efforts are required to explore the
potential and optimal usage of storage units.
Regulation and market factors are still regarded as the main barriers preventing large-scale storage
applications. The current practice is that only Croatia, Bulgaria and Serbia have relatively complete regulation
frameworks for storage assets providing ancillary services, while in most of the consortium countries holding
bulk storage facilities, the PSH assets mainly offer their capacities for energy arbitrage. Apart from the
network benefits provided by storage technologies, the revenue can be obtained in the market is far more
difficult to be quantified and not yet fully determined. A reason behind such difficulty is that storage assets
can participate in several energy markets with different time scales, which makes it difficult to remunerate

the asset owners based in the several delivered services. Additional rewards might need to be provided to
storage considering non-energy benefits and double network tariffs. Some of the applications in different
markets are competing against each other, which poses challenges to build reliable regulation frameworks
guaranteeing system security.
As for market participation of distributed storage technologies, the situation is rather challenging. If the
market mechanism and regulation framework are well developed, aggregations of distributed assets (VSP)
are needed for successful participation in regional markets. The aggregator is responsible to identify and
provide certain services/products to market participants, and distribute the revenue among each storage
asset in the aggregation. In this expected scenario, TSO-DSO cooperation is an important concept enabling
actions from storage at distribution levels. An appropriate market structure will enable investments into
storage facilities, which will promote the development of storage technologies and reduce their capital costs.
In order to achieve a cost-effective usage of distributed storage devices, the concept of VSP will be further
demonstrated in this work package. A VSP can coordinate the actions of multiple storage devices in the
aggregation, enabling market participations of distributed storage technologies. VSP will also coordinate with
other CROSSBOW products, e.g. STO-CC, WAMAS, AM and DSM, to deliver the defined functionalities in HLU5.

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Title: Document Version:: Ref. Ares (2019) 2890338 - 30/04/2019

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Title: Document Version:

Project Number: Project Acronym: Project Title:

Contractual Delivery Date: Actual Delivery Date: Deliverable Type*-Security*:

Responsible: Organisation: Contributing WP:

© CROSSBOW Consortium http://crossbowproject.eu/

This project has received funding from the

D7.1 Analysis on distributed energy storage technologies in networks with RES 2

3 An Overview of Existing Availability and Use of Distributed Storage Technologies at Pan

D7.1 Analysis on distributed energy storage technologies in networks with RES 3

c) Utility services ................................................................................................................. 45

4 Envisaged distributed storage Capabilities and Their Applications in European Networks .. 47

5 Storage Potentials Regarding Increased RES Penetration in Future Networks ..................... 58

7 Technical Requirements of the VSP product and Scenarios in CROSSBOW .......................... 73

D7.1 Analysis on distributed energy storage technologies in networks with RES 4

D7.1 Analysis on distributed energy storage technologies in networks with RES 5

Figure 35 Actions to deliver services for the accepted bids ................................................................ 83

D7.1 Analysis on distributed energy storage technologies in networks with RES 6

D7.1 Analysis on distributed energy storage technologies in networks with RES 7

D7.1 Analysis on distributed energy storage technologies in networks with RES 8

LPES Liquid- Piston Energy Storage

D7.1 Analysis on distributed energy storage technologies in networks with RES 9

D7.1 Analysis on distributed energy storage technologies in networks with RES 10

D7.1 Analysis on distributed energy storage technologies in networks with RES 11

1.2 STRUCTURE OF THE DOCUMENT

D7.1 Analysis on distributed energy storage technologies in networks with RES 12

2 EXISTING ENERGY STORAGE FACILITIES AND APPLICATIONS IN TRANSMISSION

Figure 1. Classification of EES technologies by the form of stored energy [3]

D7.1 Analysis on distributed energy storage technologies in networks with RES 13

a) Applications of energy storage in power networks

D7.1 Analysis on distributed energy storage technologies in networks with RES 14

2.2 PENETRATION LEVELS OF RENEWABLE GENERATIONS IN SOUTH EAST EU CONSORITUM

D7.1 Analysis on distributed energy storage technologies in networks with RES 15

Max. 653,568 Max. 7690 Max. 3193

Min. 174,149 Min. 2325 Min. 1048

0 500 1000 0 5000 10000 0 2000 4000

Demand in MW (Montenegro) Demand in MW (Bulgaria) Demand in MW (Greece Dis.)

(a) (b) (c)

Max. 7690 Max. 9480 Max. 1457

Min. 2325 Min. 3376 Min. 493

0 5000 10000 0 5000 10000 0 500 1000 1500

Demand in MW (Croatia) Demand in MW (Greece Trans.) Demand in MW (Macedonia)

77% 30% 92%

(d) (e) (f)

Max. 2098 Max. 9771 Max. 7429

Min. 845 Min. 4085 Min. 2503

0 1000 2000 3000 0 5000 10000 0 5000 10000

Demand in MW (Bosnia and Herzegovina) Demand in MW (Romania) Demand in MW (Serbia)

(g) (h) (i)

D7.1 Analysis on distributed energy storage technologies in networks with RES 16

0 2000 4000 6000 8000 10000 12000 14000 16000

Maximum recorded renewable generation (MW)

D7.1 Analysis on distributed energy storage technologies in networks with RES 17

Bosnia and Herzegovina(NOSBIH)

Greece Trans.(IPTO) 49,25

Greece Dis.(HEDNO) 33,67

2.3 STORAGE CAPABILITIES IN THE CONSORTIUM REGIONS

Storage Capacity to Peak Demands (%)

D7.1 Analysis on distributed energy storage technologies in networks with RES 18

a) Pumped- storage hydroelectricity (PSH) plant

Table 2. Information of PSH plants in each of the consortium country

D7.1 Analysis on distributed energy storage technologies in networks with RES 19

Table 3. Services provided by PSH plants

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