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An incentive-based framework for small-load flexibility providers

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  • Moreno, V.K.
  • Valor, C.
  • Chaves, J.P.

Abstract

Integrating renewable energy sources into electricity systems is essential for achieving a sustainable, low-carbon future. Despite the benefits, the intermittent and variable nature of renewable power generation introduces significant challenges, highlighting the need for increased system flexibility. Although previous studies emphasize the importance of incentives to attract customer participation in flexibility provision and to ensure the viability of the aggregator business model, there remains a lack of a systematic, comprehensive, and integrated incentive model. This research introduces a comprehensive Incentive-Based Framework designed to harmonise the objectives of three key stakeholders: aggregators, small-load flexibility providers (customers), and system operators, including distribution and transmission system operators.

Suggested Citation

  • Moreno, V.K. & Valor, C. & Chaves, J.P., 2025. "An incentive-based framework for small-load flexibility providers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 213(C).
  • Handle: RePEc:eee:rensus:v:213:y:2025:i:c:s1364032125001522
    DOI: 10.1016/j.rser.2025.115479
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    References listed on IDEAS

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    1. Sushil & Sanjay Dhir, 2024. "Strategic Flexibility," Springer Books, in: Strategic Management, chapter 0, pages 17-34, Springer.
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    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. Fioriti, Davide & Frangioni, Antonio & Poli, Davide, 2021. "Optimal sizing of energy communities with fair revenue sharing and exit clauses: Value, role and business model of aggregators and users," Applied Energy, Elsevier, vol. 299(C).
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