Energy Transition and its Impacts on Market Design: A Case Study About Aggregators Agents

The objective of this paper is to present the state of the art in service aggregators and how these new agents are enhancing the power market design in times of energy transition. Additionally, authors bring the suggestion of the creation of a hybrid aggregation agent in Brazilian power market that could boost the deployment of renewable sources. Faced with the pressing need to decarbonize the energy (and electricity) matrix, to maintain the feasibility of the central objective of the Paris Agreement, renewable energy sources are being adopted mainly in the expansion of the respective electricity matrices of the countries. In addition, consumers have adopted strategies to optimize their final energy cost, one of which is Distributed Generation (DG), mostly composed of photovoltaic solar sources. In addition, electric vehicles and other applications tend to become more and more present in the electric sector. Another aspect, already present in medium and high demand consumers, and which has gradually reached residential consumers, is the Demand Response (DR). The set of these technologies is called Distributed Energy Resources (DER), and their use has imposed regulatory and operational challenges on the electrical system, which needs resilience and flexibility to maintain a balance between supply and demand. In this sense, coordination between the various DERs is important, including to enable the residential consumer to participate in the wholesale energy market, or in other ancillary service markets. This possibility can be achieved through service aggregators.