Learning about the flexibility market
What is an aggregator?
In the United States and many European countries, demand aggregators are the new market player that efficiently manage different distributed energy resources (DERs) by reducing the total cost of the system and generating new revenue for asset owners.
What is an aggregator platform?
Aggregation platforms are a tool for energy sector agents to generate revenue from the flexibility of energy assets (DERs), benefiting from economies of scale by managing them in an aggregate way in the electricity markets.
What is the minimum megawatts (MW) required to operate in flexibility markets?
The minimum size to pre-qualify in flexibility markets at the moment is 1 MW of flexibility.
What is the regulation that best specifies the new legislative changes in Spain?
Royal Decree 23/2020 regulates for the first time the figure of the demand aggregator in Spain. In this link you can consult the REE Roadmap Update Roadmap MIE_23102020 (ree.es). At the same time, on 03/22/2020 REE opened a public consultation for the modification of the Conditions relating to the balance sheet for balance service providers and settlement subjects responsible for the balance in the Spanish peninsular electricity system.
What are the penalties to operate as an aggregator in the energy Markets?
Our algorithms read the consumption of the different users and the portfolio and compare it with the set point set by REE. In real time, we know if a consumer is responding correctly to our activations. if they are not, we temporarily eliminate them from the equation and distribute the request for flexibility among the users who are responding correctly. This makes it possible to minimize penalties, taking advantage of the aggregating effect and minimizing risks. In the case in which at the portfolio level we cannot follow the REE set point, we notify REE and temporarily stop offering the frequency regulation service.
Can Red Eléctrica penalize a retailer very severely if it constantly makes incorrect forecasts or purchases over a period of time?
REE penalties are economic, in the case of not providing the service correctly, the penalty is equal to 1.5 times the profits that would have been obtained by correctly delivering the service.
How should a retailer convince its customers in the first instance and beyond the promise of energy savings that it must be flexible and interrupt their energy reception?
There are different factors beyond financial savings. Adapting demand to production makes it possible to stop activating gas plants that are now providing these flexibility services. This reduces the environmental impact of its customers, increasing consumer social responsibility. Having the consumption monitored and automated allows detecting possible malfunctions and critical points in the consumption of a building / industry. In addition, better understanding how we consume energy allows us to be more aware of our consumption. If something is not measured, it is difficult to detect. Our monitoring is an added value to what we offer.
In the event that the clients of a retailer do not have technological devices to monitor consumption in an advanced way, how much will their installation cost? What will be the time required for its installation?
The cost of a gateway to exchange information and control devices is around € 250/350, depending on the brand. The installation time is very fast.
Can electric car batteries provide a flexible overnight storage point? To what extent is it a benefit for the marketer to have them or how many of these batteries are necessary to operate with them on the network satisfactorily?
Yes, electric car batteries represent an important flexible storage point. As with all other flexible technologies, operating electric cars saves resources for both the marketer and the end user. Bamboo Energy operates different technologies together, so the flexibility of electric cars can be added to that of other technologies (batteries, HVAC, industries, etc …) to reach the MW necessary to operate in flexible markets.
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