Abstract
Battery energy storage systems (BESS) can provide flexibility to the power grid, but participating in existing electricity markets often overlooks local grid congestion. Local coordination schemes can be valuable tools for distribution system operators (DSOs), but these must balance control for the DSO with privacy and commercial objectives for end users. This paper demonstrates the use of Alternating Direction Method of Multipliers (ADMM) as a consensus algorithm for coordinating with BESS operators, where the only information exchanged between the DSO and BESS operator are charging and discharging limits, keeping grid details and BESS operation plans private. The case study considers a 24-hour period in a low voltage grid, where a PV system and an industrial consumer each operate a BESS. Without coordination, the grid would see overvoltage of 1.2 p.u. and line loading rate of 207%. When ADMM-based coordination is introduced, all operational limits are satisfied, at the cost of 3.2 € and 1.1 € for the PV- and Industry-BESS operators, respectively, which could be remunerated based on the marginal cost of flexibility produced by the ADMM model.