Enabling Flexibility from Demand-Side Resources Through Aggregator Companies

Abstract

In recent years, several business models of the aggregator company have emerged in Europe, in response to a general quest for flexibility in power system operations. A systematic approach of analysing the organisational arrangements underlying a business model is still lacking, whereas the available information on the potential of aggregated resources in electricity markets is limited. This work contributes to the systematic development of the business model concept of an aggregator company, and provides insight into its economic potential. A set of elements is identified that can be used for analysing the various implementations of a business model. A revenue analysis is performed based on historical data from the day-ahead market and the imbalance settlement system in the Netherlands. The case study is about a hypothetical implementation of the aggregator company with focus on residential demand-side resources. The results show a significant theoretical potential and suggest an interesting business case.