IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i17p6386-d1231993.html
   My bibliography  Save this article

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

Author

Listed:
  • Maja Božičević Vrhovčak

    (Energy Institute Hrvoje Požar, 10000 Zagreb, Croatia)

  • Bruno Malbašić

    (Energy Institute Hrvoje Požar, 10000 Zagreb, Croatia)

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.

Suggested Citation

  • Maja Božičević Vrhovčak & Bruno Malbašić, 2023. "Unlocking the Value of Aggregated Demand Response: A Survey of European Electricity Markets," Energies, MDPI, vol. 16(17), pages 1-13, September.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:17:p:6386-:d:1231993
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/17/6386/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/16/17/6386/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gilson Dranka, Géremi & Ferreira, Paula & Vaz, A. Ismael F., 2022. "Co-benefits between energy efficiency and demand-response on renewable-based energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    2. Wang, Zibo & Dong, Lei & Shi, Mengjie & Qiao, Ji & Jia, Hongjie & Mu, Yunfei & Pu, Tianjiao, 2023. "Market power modeling and restraint of aggregated prosumers in peer-to-peer energy trading: A game-theoretic approach," Applied Energy, Elsevier, vol. 348(C).
    3. Iria, José & Soares, Filipe & Matos, Manuel, 2019. "Optimal bidding strategy for an aggregator of prosumers in energy and secondary reserve markets," Applied Energy, Elsevier, vol. 238(C), pages 1361-1372.
    4. Davor Zoričić & Goran Knežević & Marija Miletić & Denis Dolinar & Danijela Miloš Sprčić, 2022. "Integrated Risk Analysis of Aggregators: Policy Implications for the Development of the Competitive Aggregator Industry," Energies, MDPI, vol. 15(14), pages 1-22, July.
    5. Ieva Pakere & Armands Gravelsins & Girts Bohvalovs & Liga Rozentale & Dagnija Blumberga, 2021. "Will Aggregator Reduce Renewable Power Surpluses? A System Dynamics Approach for the Latvia Case Study," Energies, MDPI, vol. 14(23), pages 1-21, November.
    6. Marina Bertolini & Gregorio Morosinotto, 2023. "Business Models for Energy Community in the Aggregator Perspective: State of the Art and Research Gaps," Energies, MDPI, vol. 16(11), pages 1-26, June.
    7. Leila Luttenberger Marić & Hrvoje Keko & Marko Delimar, 2022. "The Role of Local Aggregator in Delivering Energy Savings to Household Consumers," Energies, MDPI, vol. 15(8), pages 1-27, April.
    8. Iria, José & Soares, Filipe & Matos, Manuel, 2018. "Optimal supply and demand bidding strategy for an aggregator of small prosumers," Applied Energy, Elsevier, vol. 213(C), pages 658-669.
    9. Lambin, Xavier, 2020. "Integration of Demand Response in Electricity Market Capacity Mechanisms," Utilities Policy, Elsevier, vol. 64(C).
    10. Amit Shewale & Anil Mokhade & Nitesh Funde & Neeraj Dhanraj Bokde, 2020. "An Overview of Demand Response in Smart Grid and Optimization Techniques for Efficient Residential Appliance Scheduling Problem," Energies, MDPI, vol. 13(16), pages 1-31, August.
    11. Moura, Ricardo & Brito, Miguel Centeno, 2019. "Prosumer aggregation policies, country experience and business models," Energy Policy, Elsevier, vol. 132(C), pages 820-830.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marina Bertolini & Gregorio Morosinotto, 2023. "Business Models for Energy Community in the Aggregator Perspective: State of the Art and Research Gaps," Energies, MDPI, vol. 16(11), pages 1-26, June.
    2. Roman V. Klyuev & Irbek D. Morgoev & Angelika D. Morgoeva & Oksana A. Gavrina & Nikita V. Martyushev & Egor A. Efremenkov & Qi Mengxu, 2022. "Methods of Forecasting Electric Energy Consumption: A Literature Review," Energies, MDPI, vol. 15(23), pages 1-33, November.
    3. Lu, Xiaoxing & Li, Kangping & Xu, Hanchen & Wang, Fei & Zhou, Zhenyu & Zhang, Yagang, 2020. "Fundamentals and business model for resource aggregator of demand response in electricity markets," Energy, Elsevier, vol. 204(C).
    4. Iria, José & Scott, Paul & Attarha, Ahmad, 2020. "Network-constrained bidding optimization strategy for aggregators of prosumers," Energy, Elsevier, vol. 207(C).
    5. Daishi Sagawa & Kenji Tanaka & Fumiaki Ishida & Hideya Saito & Naoya Takenaga & Seigo Nakamura & Nobuaki Aoki & Misuzu Nameki & Kosuke Saegusa, 2021. "Bidding Agents for PV and Electric Vehicle-Owning Users in the Electricity P2P Trading Market," Energies, MDPI, vol. 14(24), pages 1-17, December.
    6. Bohlayer, Markus & Fleschutz, Markus & Braun, Marco & Zöttl, Gregor, 2020. "Energy-intense production-inventory planning with participation in sequential energy markets," Applied Energy, Elsevier, vol. 258(C).
    7. Jun Dong & Dongran Liu & Xihao Dou & Bo Li & Shiyao Lv & Yuzheng Jiang & Tongtao Ma, 2021. "Key Issues and Technical Applications in the Study of Power Markets as the System Adapts to the New Power System in China," Sustainability, MDPI, vol. 13(23), pages 1-29, December.
    8. Neves, Diana & Scott, Ian & Silva, Carlos A., 2020. "Peer-to-peer energy trading potential: An assessment for the residential sector under different technology and tariff availabilities," Energy, Elsevier, vol. 205(C).
    9. István G. Balázs & Attila Fodor & Attila Magyar, 2021. "Quantification of the Flexibility of Residential Prosumers," Energies, MDPI, vol. 14(16), pages 1-21, August.
    10. Coelho, António & Iria, José & Soares, Filipe, 2021. "Network-secure bidding optimization of aggregators of multi-energy systems in electricity, gas, and carbon markets," Applied Energy, Elsevier, vol. 301(C).
    11. Luciana Marques & Wadaed Uturbey & Miguel Heleno, 2021. "An Integer Non-Cooperative Game Approach for the Transactive Control of Thermal Appliances in Energy Communities," Energies, MDPI, vol. 14(21), pages 1-22, October.
    12. Iria, José & Heleno, Miguel & Cardoso, Gonçalo, 2019. "Optimal sizing and placement of energy storage systems and on-load tap changer transformers in distribution networks," Applied Energy, Elsevier, vol. 250(C), pages 1147-1157.
    13. Okur, Özge & Heijnen, Petra & Lukszo, Zofia, 2021. "Aggregator’s business models in residential and service sectors: A review of operational and financial aspects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).
    14. Wang, Y. & Wang, J. & He, W., 2022. "Development of efficient, flexible and affordable heat pumps for supporting heat and power decarbonisation in the UK and beyond: Review and perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    15. Wang, Zibo & Dong, Lei & Shi, Mengjie & Qiao, Ji & Jia, Hongjie & Mu, Yunfei & Pu, Tianjiao, 2023. "Market power modeling and restraint of aggregated prosumers in peer-to-peer energy trading: A game-theoretic approach," Applied Energy, Elsevier, vol. 348(C).
    16. Xiao, Xiangsheng & Wang, Jianxiao & Lin, Rui & Hill, David J. & Kang, Chongqing, 2020. "Large-scale aggregation of prosumers toward strategic bidding in joint energy and regulation markets," Applied Energy, Elsevier, vol. 271(C).
    17. Oprea, Simona-Vasilica & Bâra, Adela & Ciurea, Cristian-Eugen, 2022. "A novel cost-revenue allocation computation for the competitiveness of balancing responsible parties, including RES. Insights from the electricity market," Renewable Energy, Elsevier, vol. 199(C), pages 881-894.
    18. Antonio Jiménez-Marín & Juan Pérez-Ruiz, 2021. "A Robust Optimization Model to the Day-Ahead Operation of an Electric Vehicle Aggregator Providing Reliable Reserve," Energies, MDPI, vol. 14(22), pages 1-18, November.
    19. Tang, Rui & Li, Hangxin & Wang, Shengwei, 2019. "A game theory-based decentralized control strategy for power demand management of building cluster using thermal mass and energy storage," Applied Energy, Elsevier, vol. 242(C), pages 809-820.
    20. Md. Mosaraf Hossain Khan & Amran Hossain & Aasim Ullah & Molla Shahadat Hossain Lipu & S. M. Shahnewaz Siddiquee & M. Shafiul Alam & Taskin Jamal & Hafiz Ahmed, 2021. "Integration of Large-Scale Electric Vehicles into Utility Grid: An Efficient Approach for Impact Analysis and Power Quality Assessment," Sustainability, MDPI, vol. 13(19), pages 1-18, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:16:y:2023:i:17:p:6386-:d:1231993. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.