Aggregators and Prosumers - An Analysis of Business Model Opportunities

Abstract

Climate changes and environmental degradation require more attention and measures to increase energy efficiency and utilize renewable energy sources. Traditional electricity consumers can produce and sell energy by implementing new technology, such as photovoltaic (PV) modules and windmills, making consumers prosumers of energy. This paper investigates the new prosumer business model and how it impacts value offerings by the distribution system operator (DSO) and the aggregator role in smart grids. Using literature and data from the Smart-MLA project, we present an overview of the aggregator's role in the electricity market and how this differs from a traditional consumer to DSO-model. The aggregator can be seen as a virtual power plant in the smart grid system from the power industry perspective. Further, we explore the practical business opportunities for the aggregator, which we group into five categories: Energy-efficient services, Information value-added services, Integrated energy services, extended services for energy transition, and incentives for achieving flexibility. These five categories can be used for further research into the viability of aggregator business models. For aggregators, the categories can help focus the business model and inform prosumers what they gain from connecting to an aggregator.