February 3, 2020

Enhanced business organization chart for aggregators and ESCOs

The NOVICE project has worked analysing the market and creating a new business organization chart which covers the activities of both the aggregator and the ESCO in a dual service business model.

The suggested chart inherently implies a complex network of data interchange, requiring software platforms and monitoring tools which must be able to communicate with each other. It also must be supported by robust technology and equally robust regulation. From this point of view, the chart represents a flexible opportunity, allowing ESCOs and aggregators to work together but also considering the possibility that the ESCOs may choose to enter in the DR market in future.

On the basis of this new business organization chart, what follows is the description of Demand Response activation and the associated data processing framework.

Upstream processing:

  • An independent aggregator (member of BRPAgg) closes a contract with the energy supplier (member of BRPSupp). This contract includes remuneration for DR as well as data exchange and further processes.
  • DR products (aFFR, mFFR, RR products etc.) are tendered by the Control Area Manager (CAM). Depending on the market this may take place weekly, daily or for any other time period.
  • The DR aggregator acts as Balancing Service Provider (BSP) and offers its flexible loads to the CAM (typically with a price for availability of power, and a price for energy for the case of activation).
  • After successful tendering the load has to be available for the offered time slice.
  • Availability will be rewarded with the bid-price for power.

 Demand Response (DR) activation

  • CAM requests the activation of power (switch down of technical units) from the BSP.
  • The BSP/aggregator communicates with their clients (automatically or manually) and activates the respective technical units (switch down).
  • The BSP aggregates all activated power and reports these data to the CAM (in real time).
  • DR activation data are aggregated along balance groups and sent to BRP by CAM.  In order to prevent contradictory balancing of the BRP which would remove the effect of the DR activation, the BSP informs the BRP of the supplier on the DR activation (in real time). BRPSupp has agreed not to counterbalance the DR activation.

Ex post processing

  • BSP provides a correction of the schedule that allows the BRPSupp to be compensated for changes in energy consumption (due to DR activation) and any occurred imbalance costs.
  • This corrected schedule (ex-post schedule) will be used for final imbalance settlement.


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