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Industrial demand response can play an important part in balancing the intermittent production from a growing share of renewable energies in electricity markets. This paper analyses the role of aggregators-intermediaries between participants and the electricity market-in facilitating industrial demand response. Based on the results from semi-structured interviews with German demand response aggregators, as well as a wider stakeholder online survey, we examine the role of aggregators in overcoming barriers to industrial demand response. We find that a central role for aggregators is to raise awareness for the potentials of demand response, as well as to support implementation by engaging key actors in industrial companies. Moreover, we develop a taxonomy that helps analyse how the different functional roles of aggregators create economic value. We find that there is considerable heterogeneity in the kind of services that aggregators offer, many of which do create significant economic value. However, some of the functional roles that aggregators currently fill may become obsolete once market barriers to demand response are reduced or knowledge on demand response becomes more diffused.

The substitution of fossil fueled final energy consumption through electrical appliances and processes (electrification), in combination with an increased share of emission free electricity production, poses a promising deep decarbonization strategy. To reveal the effect of high demand‐side electrification rates on the transmission grid and electricity supply‐side a case‐study analysis for the German market is performed. A reference scenario with low demand‐side electrification and low grid congestion is compared to high demand‐side electrification scenarios with two different shares of renewable electricity production of total electrical load: “Elec61” and “Elec75.” The analysis shows that an increase of the electrical load from ~500 TWh to ~760 TWh leads to heightened stress for the transmission grid and therefore more curtailment in both electrification scenarios. In Elec61, which exhibits the same share of renewable electricity production as the reference scenario, the integration of 19 TWh of flexible power‐to‐heat in district heating networks reduces the market driven curtailment of renewable feed‐in, highlighting the value of flexible electrical loads for the integration of variable renewable energy sources. Although a drastic increase of installed renewable electricity production capacity occurs in Elec61 (+109 GW) and Elec75 (+178 GW) compared to the reference scenario, fossil fueled power plants are still being dispatched frequently in times of high electrical load and low renewable energy feed. In the examined scenarios, deep decarbonization through electrification was not possible because the decrease of the CO2‐coefficient of power generation resulting from an increase in the installed capacity of variable renewable energy sources was insufficient. This article is categorized under: Wind Power > Systems and Infrastructure Energy and Climate > Systems and Infrastructure Energy Systems Analysis > Systems and Infrastructure

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Replacing traditional internal combustion engine vehicles with electric vehicles (EVs) proves to be challenging for the transport sector, particularly due to the higher initial investment. As EVs could be more profitable by participating in the electricity markets, the aim of this paper is to investigate revenue potentials when marketing bidirectionally chargeable electric vehicles in the spot market. To simulate a realistic marketing behavior of electric vehicles, a mixed integer linear, rolling horizon optimization model is formulated considering real trading times in the day-ahead and intraday market. Results suggest that revenue potentials are strongly dependent on the EV pool, the user behavior and the regulatory framework. Modeled potential revenues of EVs of current average size marketed with 2019 German day-ahead prices are found to be at around 200 €/EV/a, which is comparable to other findings in literature, and go up to 500 €/EV/a for consecutive trading in German day-ahead and intraday markets. For future EVs with larger batteries and higher efficiencies, potential revenues for current market prices can reach up to 1300 €/EV/a. This study finds that revenues differ widely for different European countries and future perspectives. The identified revenues give EV owners a clear incentive to participate in vehicle-to-grid use cases, thereby increasing much needed flexibility for the energy system of the future.