Abstract: The current invention is an intelligent distributed energy storage system for demand side power management. It provides a system that can store electric energy close to the point of use or close to the distributed production for use when demanded by the users. These storage nodes can communicate with a central clearing entity to negotiate if the nodes should buy energy for storage, provide energy to the user above a given power level, or sell power back to the grid. The function will depend on the amount of energy stored in the node, the cost of the electric energy, the cost of the electric peak power, the price of resold electrical energy and power, plus the local usage.