*4.3. Peak Shaving and Load Smoothing*

Both peak shaving and load smoothing aim to reduce the maximum amount of power visible to the system by striking a balance between the generation profile and demand. This approach produces real-time network congestion solutions by minimizing conductor overloads caused by the generation of peak power loads. Furthermore, peak shaving and load smoothing help to reduce network losses. BESS operations also reduce system losses by increasing load-to-local-generation profile matching [43,49].

#### *4.4. Frequency Regulation*

In an auxiliary service market, frequency regulation is typically provided by generators connected to a transmission network. Interestingly, it is described as a commercial offering. However, in recent years, generators and energy storage devices connected to the distribution network also provided this service. This is possible because the distribution network has become more decentralized. Additionally, the increasing demand for renewable energy brought about the modification of this policy. Both the generator and BESS use drop control to monitor the frequency and adjust the power output appropriately. In this scenario, BESS allows restrictions to be specified by the state charges (SOC) [50,51].
