Periodic Reporting for period 2 - BestRES (Best practices and implementation of innovative business models for Renewable Energy aggregatorS)
Reporting period: 2017-09-01 to 2019-02-28
There is an important role for renewable energy aggregators who act on behalf of consumers and use technological solutions and ICT for optimization. Aggregators are facilitators between the two sides of electricity markets – demand and supply. They develop energy services downstream for industrial, commercial or domestic customers who own generation and storage units or can offer demand response. Energy aggregators are offering value to the market players upstream such as BRPs, DSOs, TSOs and energy suppliers to optimize their portfolio and for balancing and congestion management. Furthermore, wholesale electricity markets benefit from aggregation if appropriate incentives are present.
The main objective of the BestRES project was to investigate the current barriers and to improve the role of renewable energy aggregators in future energy market designs. This was done by developing and implementing best practices of innovative business models for the aggregation of renewable energy. The innovative business models have been virtually implemented or implemented with real data and monitored in the following target countries: United Kingdom, Belgium, Germany, France, Austria, Italy, Cyprus, Spain and Portugal. Related recommendations to enable the further uptake of the investigated business models have also been developed.
The aim of the exploitation activities was to promote the future take-up and exploitation of the BestRES results as well as to support a wide use of the developed concepts. BestRES produced numerous reports and their findings were used to test new business models for RES aggregation using real life data from the partners of the BestRES Consortium. This stimulated other aggregators outside the consortium to do the same. All the reports not classified as confidential have been uploaded on the BestRES website and extensively disseminated at the 35 events.
The expected results until the end of the project were those one related to the implementation of improved business models and the elaboration of recommendations for the replication of improved business models.
Three main potential impacts have been identified for the BestRES project:
• Increasing share of renewable electricity in the final energy consumption
• Better policy, regulatory, market framework, financing frameworks on regional and local level
• Increase the public acceptance of renewables
Increasing the share of renewable electricity in the final energy consumption
This expected impact was translated in a market and technical dimension: 8 aggregation Business Models were implemented in 6 different European Member States. 5 business models have reached the break-even point as monitored and evaluated by the consortium. The amount of renewable energy has been correlated with the portfolio size aggregated during the implementation trial. For 4 business models the aggregation reached 5 MW. Analysis of applicability and degree of replication of business models to other market areas was carried out.
Better policy, regulatory, market framework, financing frameworks on regional and local level
BestRES supported capacity building and facilitate deployment of improved business models and innovative financial schemes for aggregation, which mobilised revenue streams to renewable energy, flexible demand, storage, and other technologies.
The project included real-life implementation of new aggregation business models. The detailed preparation and evaluation included analysis of how the business model would work or need to adapt to meet the requirements and tap revenue opportunities that come along with future market design changes in line with the EU target model. The result of the implementation and analysis were used as base for the development of recommendations and concrete proposals for local, regional and EU-wide policy and regulatory frameworks that support the replication of business models at the regional and local level or to other market regions. To ensure that targeted recommendations are practical and feasible, they have been developed alongside key stakeholders such as TSOs, DSOs, regulators, market platform operators and aggregators closely involved in the project. The goal of the recommendations was to remove barriers that hinder smaller aggregators seeking to enter the electricity market.
Addressing the needs for environmental impact assessments and public acceptance
Further market integration of RES-E pushed by the new business models developed within the BestRES project will significantly increased public and industry acceptance of renewables. The technical, social, and environmental benefits of aggregation have been demonstrated through Life- Cycle Analysis carried out within the project. In this way the benefits of aggregation have been explained to different stakeholder groups, such as policymakers, regulators, system operators and the general public.