Sub-Aggregator Business Models for Demand Response

Global efforts for decarbonizing electricity production have led to the rise of renewable energy sources that are intermittent by nature. Electricity demand will need to become more flexible to support the integration of renewables into the power system. Aggregators are companies specialised in combining distributed energy resources into larger entities that can be controlled based on power system needs. In this paper we are going to first define the flexibility value chain and the required pieces to this puzzle to make it work. Then we will explain why we feel that sub-aggregators need to be recognized as key enablers for harnessing flexibility in a cost-efficient manner. The main output of this paper are chapters that clearly define the roles and responsibilities needed to form fair and sustainable business models for aggregators and sub-aggregators.