The Value of Aggregators in Electricity Systems

Abstract

A widespread view is that demand response can be more easily activated by the help of an intermediator company called the aggregator. The aggregator makes installations, helps consumers control their appliances in an efficient way and pays for the services delivered. As the name suggests, the aggregator groups these small-scale services into larger bundles and sells them to grid companies and wholesale customers. In other words, they empower the consumer to manage their energy use and save money without sacrificing their comfort and lifestyle. This report studies the role of the aggregator in activating demand response and providing market access to other forms of distributed energy resources. Such companies can arrange their business in various ways, including its responsibilities and income sources. Their relationship with end-users and other power system participants can take different forms. The report takes a qualitative approach to the issue; simulations will be described in another report.