Abstract: Distributed energy storage is changing the structure of power supply and demand. Distributed energy storage not only helps users resolve power stability issues and decrease electricity costs, it can also lower peak capacity demands for power distribution, remedy the negative impact that distributed resource spontaneity has to the grid, and drive greater investment returns across the entire grid. However, across the globe, distributed energy storage development models still remain in the exploratory stage. The question of how to fully develop the value of distiributed energy storage is one that requires further research and exploration from all countries. At present, a variety of innovative business models have already been established in domestic and overseas markets. In addition to support from a good market environment and incentive policies, such emerging business models usually need to meet certain conditions in order to be successful. First, the business model should be compatible with demand response resources. Second, the model should provide solutions that can resist change brought about by external policies or the market environment. Third, the model should be easy for customers to accept. A good business model can stand the test of the market only when both its internal and external conditions are excellent.

Key words: energy storage, business model, virtual power plant, revenue, payback period