Market-based business model for flexible energy aggregators in distribution networks

The increasing rate of the smart technology implementations in the energy sector brings new control solutions for distributed renewable energy sources (DRES) to tackle the additional challenges on the distribution network that arise from increased integration of renewable energy sources (RES). With these new control solutions, a possibility of new services that could be offered on electricity and ancillary markets emerged, providing a possibility of new source of income for DRES, Demand Response (DR) and Aggregators. This paper presents the main results of the EU FP7 project INCREASE, where innovative controls for DRES and DR units were developed and investigated. The main novelty of the paper is a sensitivity analysis of INCREASE ancillary services and business model applied to representative European grid for overall policy conclusions. The knowledge gained in INCREASE provides the basis for the work in H2020 project STORY, where the demand response strategies will be augmented to encompass small-scale storage solutions.