Review of multi-BRP, aggregator settlement models at large-scale connections in the European electricity system

Developments in the electricity grid such as the integration of renewable energy and the deployment of electric transportation and heating will result in a more complex system with higher degree of uncertainty. An increasing role for flexibility can maintain the economic and technical functioning of this grid. Flexibility aggregators enhance the availability of flexibility, but can expose energy suppliers and their BRPs to risks when not subject to a proper market structure. In this paper, five settlement models to structure the interactions between energy suppliers, BRPs and aggregators are reviewed in the context of the European electricity market: the uncorrected, corrected, contractual, central settlement and the combined model.