Aggregator of Demand Response for Renewable Integration and Customer Engagement: Strengths, Weaknesses, Opportunities and Threats

Abstract

The world is progressing towards a more advanced society where end-consumers have access to local renewable-based generation and advanced forms of information and technology. Hence, it is in a current state of transition between the traditional approach to power generation and distribution, where end-consumers of electricity have typically been inactive in their involvement with energy markets and a new approach that integrates their active participation. This new approach includes the use of distributed energy resources (DER) such as renewable-based generations and demand response (DR), which are being rapidly adopted by end-consumers, where incentives are strong. This paper presents the role of DR aggregator to effectively integrate DER technologies as a new source of energy capacity, into the electricity networks using information communication technology and industry knowledge. This framework based on DR aggregators will facilitate renewable energy integration and customer engagement in electricity market efficiently. To this aim, advantages and disadvantages of DR aggregators are discussed in this paper from political, economic, social and technological (PEST) point of views. Based on this analysis, a strengths, weaknesses, opportunities, and threats (SWOT) analysis for a typical DR aggregator is presented.

A Comprehensive Review on Power System Flexibility: Concept, Services, and Products

“…Aggregators also integrate VER technologies, which afford energy system operators a profitable structure, relaxing the need for additional capacities. Besides, they exploit the demand-side flexibility by contracting with the demand sites [52], [53].…”

Optimizing Size of Variable Renewable Energy Sources by Incorporating Energy Storage and Demand Response

“…Besides energy storage, demand response is also viable alternative to add renewable energy in the system without jeopardizing system stability [2], [54], [55]. In this work, DR is divided into daily, weekly and monthly DR that distribute flexible demand (0.63 PWh) into 365 days, 52 weeks and 12 months respectively.…”

Aggregator’s Business Models: Challenges Faced by Different Roles

“…However, the demand and supply of individual residential and service sectors' consumers are too small to be able to participate in the electricity markets. Aggregators, on the other hand, are able to pool and coordinate flexibility coming from the consumers [6], making them rather crucial for successful implementation of flexibility from the demand side [7]. Aggregators can participate in various electricity markets on behalf of their consumers, and can trade flexibility obtained from their consumers' assets.…”