Market Design Proposition of a Hybrid Power Plant Aggregation Agent in an Energy Transition Context

Energy markets are going through an unprecedented revolution, motivated by two factors: i) the increasing participation of renewable power in the electrical matrix and ii) the empowerment that the retail end-user is acquiring, including aspects such as distributed energy resources, and how the electrical matrix itself expands. In this context, energy markets must be flexible and enhanced, to guarantee that these two aspects can be fully integrated in the technical and regulatory framework. The context of the Brazilian electrical energy market is no different, with several aspects to address. Nevertheless, there is a business structure in Brazilian energy market that can be enhanced: the self-production structure. Combined with the metering aggregation, self-production structure can have a new agent: the hybrid power plant aggregator. The objective of this paper is to propose a market design for the implementation of the hybrid power plant aggregator, considering the state of the art about virtual power plants assets, the best international practice and current Brazilian market context. This would boost investments in renewable, sustaining global efforts in the energy transition and technology evolution, allowing that new business models and products to be created and offered for the end user consumer.