A study on a multi-purpose ESS utilization business model for enhancing grid resilience
J. Y. Kim, Sang‐Won Lee, Kyeong-hwan Kim, Seung-bum Bae, Seung-min Jang · IET conference proceedings. · 2025
With the expansion of renewable energy and distributed power, the importance of introducing energy storage systems (ESS) as a flexible resource for stable power grid operation is increasing. ESS plays a key role in mitigating the variability of renewable energy, resolving issues with power grid construction delays, and achieving grid resilience and carbon neutrality. The ESS market is divided into 'FTM (In front of the meter)' market and 'BTM (Behind the meter)' market based on battery size, application, and installation location. To enhance grid resilience, expanding standalone grid-connected ESS in the FTM market is crucial. However, ESS remains expensive in the global market, and due to the high cost structure, securing profitability with ESS that performs fragmented functions is challenging. To address this issue, utilizing energy storage systems (ESS) for various purposes rather than a single role could be a solution. For example, it can be used for grid stabilization and customer peak reduction purposes. Therefore, in order to promote the widespread adoption of grid-connected ESS, it is essential to establish a business model that secures profitability and attracts investment from public and private sectors. Therefore, this paper aims to propose a new shared ESS model between FTM and BTM that reflects this, and to derive a new business model for grid-connected ESS through an analysis of the benefits for utilities, ESS Operators and participating customers.