As more renewable energy is added to the grid, more balancing services are required to dynamically match available generation with demand. This can include options such as demand side response, where energy-intensive businesses are paid to reduce or increase their demand as generation fluctuates, or the use of battery storage to rapidly draw electricity from the grid or return it.
While much of this is handled by grid-scale battery storage, it also potentially offers businesses with their own Behind-the-Meter storage the option to pursue new revenue streams. However, it can be difficult to engage with grid balancing services meaningfully if you only have, for example, a 500kW battery. This is where aggregators come in.
Aggregators are effectively virtual power plants, which link a range of different organisation’s battery storage technology using centralised control software to provide demand response programmes in tandem with both TSOs and DNOs.
Engaging with an aggregator can help to ensure that your battery storage or on-site generation project is incorporated into a wider collective that is able to better provide demand response services to dynamically balance supply and demand in real-time, opening up new potential revenue streams for your business.
A company requires a licence from Ofgem to operate as an aggregator, with 23 licences currently being held for the UK. A full list of licence holders can be found here: