Combined effort opportunities of aggregated demand response flexibility and energy savings in households

Abstract

This paper analyses possible synergies between demand response flexibility programmes and energy savings delivered by households. In the framework of the energy transition, European Union (EU) directives are endorsing energy consumers to become full-fledged participants of the energy market, mostly via independent aggregator intermediaries. The flexibility aggregators have a very arduous role in collecting, optimising and settling aggregated flexibility delivered from heterogenous sources on the energy market. Novel business models incorporating both flexibility and energy savings opportunities from households’ consumers could deliver revenue diversification for flexibility aggregators and support them in overcoming technical and motivational challenges for activating consumers in the energy market. This paper discusses the main pillars for a sustainable flexibility aggregator business model which sums up the potential for flexibility placement on energy, ancillary services and energy savings markets. The main challenge identified in this work are the requirements for programme establishment, allowing the recognition and proper interpretation of energy savings triggered by short-term events and obtained by an aggregator via explicit demand response actions. This paper proposes possible solutions for a joint venture of a flexibility and energy savings aggregator, thus alleviating possible data collection problems. Collaborative efforts have been recognised in the establishment and maintenance of information and communication technologies and infrastructure, therefore facilitating continuous monitoring and verification of flexibility programmes which are able to deliver energy savings.