Role of Energy Aggregators
- Route to Market: Energy aggregators provide a route to market for energy trading and flexibility services. They allow asset owners, including those with battery energy storage systems (BESS), to participate in power markets that require large-scale energy capacities, often beyond the capabilities of individual storage systems.
- Grid Services and Balancing: Aggregators help battery storage facilities offer grid balancing services. By storing and discharging energy as needed, batteries can support grid resilience, especially when integrating intermittent renewable sources. This service is valuable, and aggregators help negotiate financial compensation from entities like the National Grid Electricity System Operator.
- Portfolio Management: Aggregators combine multiple assets, such as generators, demand-response participants, and storage systems, into a single portfolio. This collective operation allows for more substantial and coordinated contributions to the grid, enabling smaller assets to participate in larger markets that typically demand minimum capacities (like 1 MW).
- Diversified Revenue Streams: Aggregators enable revenue stacking by accessing various market products, including wholesale price arbitrage, ancillary services (e.g., frequency regulation), and capacity markets. By diversifying revenue sources, aggregators help mitigate risks and maximize financial returns from energy storage systems.
- Market Intelligence and Optimization: Energy aggregators often possess advanced data analytics and market expertise. They optimize the dispatch of energy storage systems at opportune times, maximizing value through precise market analytics and stochastic pricing models. This ensures that storage systems capture the best revenue opportunities, especially during periods of price volatility or supply-demand imbalances.
Overall, energy aggregators enhance the economic viability of battery energy storage by leveraging scale, diversification, and market expertise to unlock multiple revenue streams and optimize system performance.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-energy-aggregators-help-in-maximizing-revenue-from-battery-energy-storage/
