Unlocking the Value of Aggregated Demand Response: A Survey of European Electricity Markets

Maja Božičević Vrhovčak () and Bruno Malbašić
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Maja Božičević Vrhovčak: Energy Institute Hrvoje Požar, 10000 Zagreb, Croatia
Bruno Malbašić: Energy Institute Hrvoje Požar, 10000 Zagreb, Croatia

Energies, 2023, vol. 16, issue 17, 1-13

Abstract: This paper focuses on the possible roles of aggregators in the European electricity markets and the challenges and opportunities they face in participating in different market segments. Demand response (DR) is becoming increasingly important with the growth of renewable energy, and aggregators can play a critical role in balancing supply and demand in real time. This paper provides an overview of prices in electricity markets in which DR aggregators can participate and provides recommendations for aggregators regarding which markets to focus on. However, the regulatory framework for aggregators is still evolving in Europe, creating challenges for them to navigate different market designs, regulatory frameworks, and pricing mechanisms. Through a combination of literature review and data analysis, this paper aims to provide insights for aggregators on how to maximize profits and minimize risks in the European electricity market. The article achieves this by conducting an extensive analysis of various markets, comparing their essential attributes relevant to the functioning of aggregators.

Keywords: aggregator; demand response; electricity markets (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
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