Introduction: An RPZ has been established on Orkney using Active Network Management technology to facilitate the connection of new renewable generation on to a constrained 33kV network. cottish and Southern Energy Power Distribution has experience of operating a 100kW Zinc Bromide flow battery and is installing a 1MW Sodium Sulphur NAS battery

In contrast to Scottish and Southern Energy Power Distribution's existing energy storage installations, this project is aimed principally at demonstrating that it is possible for a DNO to create commercial incentives and infrastructure to encourage third party Energy Storage Providers (ESP) to locate their storage in areas where it can be used to alleviate network constraints. These commercial arrangements will benefit Energy Storage Systems (ESS) owners/operators who provide systems that exhibit charging/discharging characteristics that are tuned to that particular network constraint.

This Tier 1 project will create the commercial contracts neccesary to incentivise the 3rd party ESPs, prepare a tender process that will select the most suitable 3rd party ESP, design the installation for up to 2ESSs outside Kirkwall Power Station (KPS) and select up to the 2 most suitable ESPs that fullfill the success criteria.

If two suitable ESPs are selected, then a follow on Tier 1 Project will be registered that will construct the connection points and trial the commercial arrangements. However if no suitable ESPs are identified from the bidding process then the follow on Tier 1 Project will not be registered.

Objectives: The project has the following objectives objectives:

• Create commercial contracts that will incentivise 3rd Party ESPs to locate on a constrained distribution network

• Prepare a tender process that will ensure that the ESPs selected will fulfil the success criteria

• Design up to 2 connection points for ESSs outside KPS

• Award up to two ESPs.