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Aggregator of Demand Response for Renewable Integration and Customer Engagement: Strengths, Weaknesses, Opportunities, and Threats

Author

Listed:
  • Kody T. Ponds

    (BHP Billiton Limited, Perth WA 6000, Australia)

  • Ali Arefi

    (School of Engineering and Information Technology, Murdoch University, Perth WA 6150, Australia)

  • Ali Sayigh

    (World Renewable Energy Network, Brighton BN2 1FD, UK)

  • Gerard Ledwich

    (Department of Electrical Engineering and Computer Science, Queensland University of Technology, Brisbane QLD 4000, Australia)

Abstract

The world is progressing towards a more advanced society where end-consumers have access to local renewable-based generation and advanced forms of information and technology. Hence, it is in a current state of transition between the traditional approach to power generation and distribution, where end-consumers of electricity have typically been inactive in their involvement with energy markets and a new approach that integrates their active participation. This new approach includes the use of distributed energy resources (DER) such as renewable-based generation and demand response (DR), which are being rapidly adopted by end-consumers where incentives are strong. This paper presents the role of the DR aggregator to effectively integrate DER technology as a new source of energy capacity into electricity networks using information communication technology and industry knowledge., Based on DR aggregators, this framework will efficiently facilitate renewable energy integration and customer engagement into the electricity market. To this aim, advantages and disadvantages of DR aggregators are discussed in this paper from political, economic, social, and technological (PEST) points of view. Based on this analysis, a strengths, weaknesses, opportunities, and threats (SWOT) analysis for a typical DR aggregator is presented.

Suggested Citation

  • Kody T. Ponds & Ali Arefi & Ali Sayigh & Gerard Ledwich, 2018. "Aggregator of Demand Response for Renewable Integration and Customer Engagement: Strengths, Weaknesses, Opportunities, and Threats," Energies, MDPI, vol. 11(9), pages 1-20, September.
    • Handle: RePEc:gam:jeners:v:11:y:2018:i:9:p:2391-:d:169075
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    2. Diaz-Londono, Cesar & Enescu, Diana & Ruiz, Fredy & Mazza, Andrea, 2020. "Experimental modeling and aggregation strategy for thermoelectric refrigeration units as flexible loads," Applied Energy, Elsevier, vol. 272(C).
    3. Behnaz Behi & Ali Arefi & Philip Jennings & Arian Gorjy & Almantas Pivrikas, 2021. "Advanced Monitoring and Control System for Virtual Power Plants for Enabling Customer Engagement and Market Participation," Energies, MDPI, vol. 14(4), pages 1-19, February.
    4. Okur, Özge & Heijnen, Petra & Lukszo, Zofia, 2021. "Aggregator’s business models in residential and service sectors: A review of operational and financial aspects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).
    5. Mohammad Said El Halimi & Alberto Zanelli & Francesca Soavi & Tarik Chafik, 2023. "Building towards Supercapacitors with Safer Electrolytes and Carbon Electrodes from Natural Resources," World, MDPI, vol. 4(3), pages 1-19, July.
    6. Ramos, Dorel Soares & Del Carpio Huayllas, Tesoro Elena & Morozowski Filho, Marciano & Tolmasquim, Mauricio Tiomno, 2020. "New commercial arrangements and business models in electricity distribution systems: The case of Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 117(C).
    7. Carmine Cancro & Camelia Delcea & Salvatore Fabozzi & Gabriella Ferruzzi & Giorgio Graditi & Valeria Palladino & Maria Valenti, 2022. "A Profitability Analysis for an Aggregator in the Ancillary Services Market: An Italian Case Study," Energies, MDPI, vol. 15(9), pages 1-26, April.
    8. Gabriel Santos & Tiago Pinto & Zita Vale & Rui Carvalho & Brígida Teixeira & Carlos Ramos, 2021. "Upgrading BRICKS—The Context-Aware Semantic Rule-Based System for Intelligent Building Energy and Security Management," Energies, MDPI, vol. 14(15), pages 1-14, July.
    9. Afentoulis, Konstantinos D. & Bampos, Zafeirios N. & Vagropoulos, Stylianos I. & Keranidis, Stratos D. & Biskas, Pantelis N., 2022. "Smart charging business model framework for electric vehicle aggregators," Applied Energy, Elsevier, vol. 328(C).
    10. Guntram Pressmair & Christof Amann & Klemens Leutgöb, 2021. "Business Models for Demand Response: Exploring the Economic Limits for Small- and Medium-Sized Prosumers," Energies, MDPI, vol. 14(21), pages 1-28, October.
    11. Davor Zoričić & Goran Knežević & Marija Miletić & Denis Dolinar & Danijela Miloš Sprčić, 2022. "Integrated Risk Analysis of Aggregators: Policy Implications for the Development of the Competitive Aggregator Industry," Energies, MDPI, vol. 15(14), pages 1-22, July.
    12. Carlos Cruz & Esther Palomar & Ignacio Bravo & Alfredo Gardel, 2020. "Cooperative Demand Response Framework for a Smart Community Targeting Renewables: Testbed Implementation and Performance Evaluation," Energies, MDPI, vol. 13(11), pages 1-20, June.
    13. Rosane Santos & André Luiz Diniz & Bruno Borba, 2022. "Assessment of the Modeling of Demand Response as a Dispatchable Resource in Day-Ahead Hydrothermal Unit Commitment Problems: The Brazilian Case," Energies, MDPI, vol. 15(11), pages 1-15, May.
    14. Golmohamadi, Hessam, 2022. "Demand-side management in industrial sector: A review of heavy industries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).

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