Energy aggregation is the process of combining many small energy resources (loads or generation) so that they can participate in wholesale electricity markets, which typically have minimum size requirements (e.g., 100 kW). The energy aggregation market is the service of doing this aggregation. The energy aggregation market for "demand response" aggregators is the most common. The energy aggregation market for "VPP" aggregators is a broader term. The energy aggregation market for "community choice aggregation" (CCA) is for buying power, not selling.

The broader virtual power plant market is a type of energy aggregation. The energy aggregation market for "small" customers (residential) requires very low-cost technology. The energy aggregation market for "commercial" and "industrial" (C&I) customers has larger loads and can use more sophisticated controls. The energy aggregation market for "behind-the-meter" storage is a growing segment.

The energy aggregation market for "business models" include: the aggregator receives a share of the wholesale market revenue; the aggregator pays a fixed fee to customers; the aggregator offers a discount on electricity bills. The energy aggregation market for "retail" aggregators contract directly with customers. The energy aggregation market for "wholesale" aggregators participate in ISO/RTO markets.

The energy aggregation market for "customer" acquisition is challenging; customers must be convinced to give up control. The energy aggregation market for "opt-in" vs. "opt-out" programs: opt-out (default) programs have higher participation rates.

The energy aggregation market for "measurement and verification" (M&V) of load reduction is required for payment. The energy aggregation market for "baseline" calculation (what the load would have been without intervention) is complex.

Looking ahead, the energy aggregation market will see the integration of "EV" charging as a flexible load. The energy aggregation market for "transactive" energy (where customers set their own price) will evolve. The energy aggregation market for "automated" bidding in wholesale markets will reduce the need for human operators.

Discover emerging opportunities with in-depth research reports:

redox flow battery market

stationary flow battery storage market

vanadium redox flow battery market

vrb battery