As a response to an ongoing European discussion regarding aggregation of demand response, a NordREG working group has written a discussion paper about different arrangements for aggregation of demand response.
In the paper, NordREG discusses the consequences for the settlement of Balance Responsible Parties (BRPs) in relation to several market setups for aggregation of demand response, including market setups for so-called “independent aggregators”, an aggregator which is independent from the customer’s supplier and BRP.
NordREG identifies some inherent practical challenges and potential negative consequences of a market setup with “independent aggregators”, since such a model would most likely imply the need for several BRPs per connection point.
Further, NordREG concludes that the current Nordic market setup, with a competitive and well-functioning retail market, should be able to bring demand response as a choice for all consumers, through one BRP. Such solutions could e.g. be developed by suppliers offering services for aggregation of demand response, or if suppliers and aggregators cooperates in offering such services.
NordREG recognise that other measures may be relevant for less competitive markets throughout Europe, though we generally believe that the priority should be to first improve market functioning.
Last but not least, NordREG stress the need for the competent national authorities to have freedom to conduct thorough impact assessments before any changes to the market setup are introduced, based on the national market situation.
Contact persons in NordREG:
Stian Henriksen, NVE, e-mail: sthe@nve.no
Lena Jaakonantti, Ei, e-mail: lena.jaakonantti@ei.se
Peter Christian Olsen, DERA, e-mail: pco@energitilsynet.dk
Ville Väre, EV, e-mail: ville.vare@energiavirasto.fi