Developing a Framework for a Retail Electricity Model Incorporating Energy Storage

Embedded generation at the distribution level is an untapped source of voltage, frequency regulation and inertia services for the most part. The distribution level has historically been associated with the delivery of energy sourced from the transmission system via a wholesale electricity market. Due to the growth of embedded generation at the distribution level this flow is changing as solar and wind generation, electric vehicles, heat pumps and demand response activity via smart appliances and storage technologies develop. Therefore it is very important to integrate the retail market and distribution grid operations to optimize energy flows economically and achieve environmental targets. Therefore, at the distribution level, system modeling is required to qualify, quantify and value the installation of embedded energy storage. The aim of this paper is to establish a retail market framework to integrate embedded generation at the grid distribution level to avail of these untapped services.