Overview of the regulation on aggregator agents in Europe

Abstract

Demand Response (DR) mechanisms promise to increase competition in the electricity sector and grid's reliability. Balancing and ancillary services could be offered by consumers for frequency balances but a new actor is necessary: demand aggregator. However, new challenges appear for systems operator (SO) when handling generators and consumers coexisting in the same market. Furthermore, aggregators need to create a reliable business model, being able to combine the grid's request and assuring revenues for their clients and themselves. So, how are European countries facing this challenge? This work reviews technical requirements and the legislative framework of five different regions in Europe: Belgium, France, Nordic Countries, Germany and Great Britain. The aim is to describe the measures that SOs are taking in order to allow and ease DR penetration. Comparing different markets allows for the identification of winning policies and remaining market barriers.