The German initiative Energiewende aims to decrease their dependence on nuclear andfossil-based energy, and to increase the share of variable renewable energy sources (V-RES).This transformation calls for new technical solutions that can meet future stakeholderneeds. Distributed battery storage (DBS), which can be used as a complement to theunreliable V-RES, is such a solution.In this thesis, the possibilities for incorporating DBS into the German energy market werefirst analyzed. This was followed by calculations of the economic potential for DBS, and lastlya possible business model for Vattenfall associated with the identified businessopportunities was developed. The assessment shows big opportunities of incorporating DBSinto the future energy system since it can increase the reliability and stability of thedecentralized generation of V-RES. DBS will also be the cheapest solution for an averagehousehold 2030, making the technology a profitable solution. A suitable business model hasalso been identified for Vattenfall, which focuses on the activities of leasing the DBS-units toprosumers and utilizing excess capacity for ancillary services to TSO’s and DSO’s. Theancillary services that can be utilized include frequency regulation and peak shaving.Theoretically the thesis contributes with knowledge about the increasing possibilities of DBSbecoming a large part of the future German power system. The thesis will also be a practicaltool for utilities on how to adapt their business offering with regards to the new market.