Distributed Energy Storage in the Dutch Electricity Network

Abstract

Renewable energy sources and shifting electricity demand patterns present challenges to electricity grid operators. Large batteries could provide a solution to grid damage. However, previous studies have shown that costs of batteries are currently too high. Here, we investigate the profitability of storage solutions when energy trading is added to the decision control. This report features an extensive overview of the Dutch electricity system, including various electricity markets. The topic is researched both as an optimisation problem as well as a profitability study in the current Dutch situation. This profitability is tested using a custom simulation model that features a realistic cable damage model, various sources of Dutch electricity demand data, realistic forecasting and two main electricity markets. We evaluate numerous strategies using this model. As part of this evaluation we investigate how local search can be used to find solutions. We discuss the boundaries to which our model can be extended, and provide a decision tool for grid operators to answer a question of growing importance: Is energy storage a preferred and profitable solution to electricity grid damage?