A review of behind-the-meter energy storage systems in smart grids

The electric power industry is experiencing a paradigm shift towards a carbon-free smart system boosted by rising energy demand, depreciation of long-lived physical assets, as well as global environmental challenges. Recent advances in information and communications technology, as well as the widespread integration of renewable energy resources to the power distribution system, have introduced new opportunities and challenges for system operators and end-users alike. Energy storage systems (ESSs) can help make the most of the opportunities and mitigate the potential challenges. Hence, the installed capacity of ESSs is rapidly increasing, both in front-of-the-meter and behind-the-meter (BTM), accelerated by recent deep reductions in ESS costs. This work is focused on BTM ESSs installed in end-users ' premises and associated technologies, different billing and pricing policies, as well as their potential capabilities from both the system operators' and end-users’ perspectives. Furthermore, a brief but comprehensive overview of optimization solutions for BTM energy management problems and a quick summary of some BTM case studies are provided. Finally, challenges in the realization of BTM systems in today's power system are explored, and potential research areas and progressive solutions for future studies are identified. •A comprehensive study of BTM ESS in terms of its configurations and associated technologies.•Study on the impacts of different metering and billing schemes on BTM resources profitability.•Detailed discussion on BTM resources applications offered to end-users and utilities.•Review of optimization methods proposed for BTM energy management problems.•A thorough investigation of case studies, realization challenges, research gaps, and potential future research areas.