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Independent aggregators: New opportunities of business and technological development

AleaSoft, July 28, 2020. In the Royal Decree Law 23/2020 the figure of the independent aggregator was included, through which it will be possible to manage the demand of various consumers and generators, to operate in the electricity markets. With this new figure, new business opportunities will be opened and it will provide a stimulus for the technological development, while moving forward on the path to the energy transition.

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Last June the Spanish Government approved the Royal Decree‑Law 23/2020 with a series of energy measures to reactivate the economy, due to the economic impact that are causing the COVID‑19 pandemic and the restrictions carried out to stop its spread. The measures are aimed to advance in the energy transition, in order to achieve the objectives of greenhouse gas emissions reduction and of renewable capacity by 2030 of the Integrated National Energy and Climate Plan (NECP).

Some of the included measures are the design of the renewable energies auctions, the regulation of the figure of the electricity storage, the regulation of the access and connection permits to the electricity transmission and distribution grids, the introduction of the hybridisation of renewable technologies and of the renewable energies communities.

Another concept that is introduced in the Royal Decree‑Law is that of the independent aggregators, whose purpose is managing the demand of various consumers or generators of electricity for its sale or purchase in the different electricity markets. Until now the balance between supply and demand was made mainly through the generation, which is adapted to the demand at each moment. With the demand aggregators, it will also be possible to achieve the balance between supply and demand from the demand side, either because the consumption stops or because energy stored through batteries or hydrogen is supplied. This will bring reliability, safety, flexibility and dynamism to the electricity system, which is essential considering the expected increase in generation capacity with non‑manageable renewable energies.

There are many advantages of introducing the independent aggregators. One of them is that new business opportunities are opening, of which small and medium‑sized consumers, who will be able to participate in the markets through this channel, might also benefit.

Another positive aspect is the increase in energy efficiency and the decrease in greenhouse gas emissions by reducing the need to resort to polluting sources of electricity generation to meet the demand.

In addition, the technological development will be favoured by creating the need for tools to automate the demand management, making use of techniques of Artificial Intelligence, Machine Learning, Big Data, Digitalisation, Robotics, among others. It will be necessary to have demand forecasting, combined with renewable energy production forecasting and self‑consumption forecasting that allow the monitoring and optimisation of the management of the independent aggregator’s portfolio.

In short words, the independent aggregator constitutes a new paradigm in the electricity sector and opens up endless opportunities for business and technological development, while contributing to advancing in the energy transition process.

Source: AleaSoft Energy Forecasting.

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