A (not so) independent aggregator in the balancing market theory, policy and reality check

Ksenia Poplavskaya; Laurens De Vries

doi:10.1109/EEM.2018.8469981

A (not so) independent aggregator in the balancing market theory, policy and reality check

Energy and Industry

Research output: Chapter in Book/Conference proceedings/Edited volume › Conference contribution › Scientific › peer-review

13 Citations (Scopus)

91 Downloads (Pure)

Abstract

The aggregator has been touted as the key enabler of active engagement of distributed energy resources and promises to contribute to greater economic efficiency in the European balancing markets by providing cheap sources of flexibility. This paper presents an empirical analysis of how aggregators organize themselves in relation to other market participants given the rules of the balancing market and the impact thereof on their participation. We reviewed how market design influences their choices by comparing three countries, Austria, Germany and the Netherlands, in the light of the goals set by the EU. Despite the EU policy drive to integrate aggregators, the participation of independent aggregators in the balancing market is so far limited. Relaxing the agreement requirements, allowing pool-based prequalification and standardizing compensation mechanisms unlocks more possible business models for the aggregator and may help create synergies among aggregators, suppliers and balance responsible parties.

Original language	English
Title of host publication	15th International Conference on the European Energy Market, EEM 2018
Publisher	IEEE
Volume	2018-June
ISBN (Electronic)	9781538614884
DOIs	https://doi.org/10.1109/EEM.2018.8469981
Publication status	Published - 2018
Event	15th International Conference on the European Energy Market, EEM 2018 - Lodz, Poland Duration: 27 Jun 2018 → 29 Jun 2018

Conference

Conference	15th International Conference on the European Energy Market, EEM 2018
Country/Territory	Poland
City	Lodz
Period	27/06/18 → 29/06/18

Bibliographical note

Green Open Access added to TU Delft Institutional Repository ‘You share, we take care!’ – Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.

Keywords

Aggregator
Balance responsible party
Balancing market
Energy policy
Market design

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1109/EEM.2018.8469981

08469981Final published version, 571 KB

Cite this

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title = "A (not so) independent aggregator in the balancing market theory, policy and reality check",

abstract = "The aggregator has been touted as the key enabler of active engagement of distributed energy resources and promises to contribute to greater economic efficiency in the European balancing markets by providing cheap sources of flexibility. This paper presents an empirical analysis of how aggregators organize themselves in relation to other market participants given the rules of the balancing market and the impact thereof on their participation. We reviewed how market design influences their choices by comparing three countries, Austria, Germany and the Netherlands, in the light of the goals set by the EU. Despite the EU policy drive to integrate aggregators, the participation of independent aggregators in the balancing market is so far limited. Relaxing the agreement requirements, allowing pool-based prequalification and standardizing compensation mechanisms unlocks more possible business models for the aggregator and may help create synergies among aggregators, suppliers and balance responsible parties.",

keywords = "Aggregator, Balance responsible party, Balancing market, Energy policy, Market design",

author = "Ksenia Poplavskaya and {De Vries}, Laurens",

note = "Green Open Access added to TU Delft Institutional Repository {\textquoteleft}You share, we take care!{\textquoteright} – Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.; 15th International Conference on the European Energy Market, EEM 2018 ; Conference date: 27-06-2018 Through 29-06-2018",

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AU - De Vries, Laurens

N1 - Green Open Access added to TU Delft Institutional Repository ‘You share, we take care!’ – Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.

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N2 - The aggregator has been touted as the key enabler of active engagement of distributed energy resources and promises to contribute to greater economic efficiency in the European balancing markets by providing cheap sources of flexibility. This paper presents an empirical analysis of how aggregators organize themselves in relation to other market participants given the rules of the balancing market and the impact thereof on their participation. We reviewed how market design influences their choices by comparing three countries, Austria, Germany and the Netherlands, in the light of the goals set by the EU. Despite the EU policy drive to integrate aggregators, the participation of independent aggregators in the balancing market is so far limited. Relaxing the agreement requirements, allowing pool-based prequalification and standardizing compensation mechanisms unlocks more possible business models for the aggregator and may help create synergies among aggregators, suppliers and balance responsible parties.

AB - The aggregator has been touted as the key enabler of active engagement of distributed energy resources and promises to contribute to greater economic efficiency in the European balancing markets by providing cheap sources of flexibility. This paper presents an empirical analysis of how aggregators organize themselves in relation to other market participants given the rules of the balancing market and the impact thereof on their participation. We reviewed how market design influences their choices by comparing three countries, Austria, Germany and the Netherlands, in the light of the goals set by the EU. Despite the EU policy drive to integrate aggregators, the participation of independent aggregators in the balancing market is so far limited. Relaxing the agreement requirements, allowing pool-based prequalification and standardizing compensation mechanisms unlocks more possible business models for the aggregator and may help create synergies among aggregators, suppliers and balance responsible parties.

KW - Aggregator

KW - Balance responsible party

KW - Balancing market

KW - Energy policy

KW - Market design

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M3 - Conference contribution

AN - SCOPUS:85055509585

VL - 2018-June

BT - 15th International Conference on the European Energy Market, EEM 2018

PB - IEEE

T2 - 15th International Conference on the European Energy Market, EEM 2018

Y2 - 27 June 2018 through 29 June 2018

ER -

A (not so) independent aggregator in the balancing market theory, policy and reality check

Abstract

Conference

Bibliographical note

Keywords

UN SDGs

Access to Document

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Cite this