NordREG publishes recommendations on a harmonised Nordic regulatory framework for independent aggregators
Aggregators have the potential of playing a key role in a fast-changing power system by making it easier for consumers to offer flexibility to the power system. Specifically, this means that aggregators can enter into agreements with electricity customers, allowing them to shift consumption away from peak and constrained periods.
Consumption flexibility through aggregation gives the Transmission System Operators (TSO) a new tool for balancing the power system and can, as such, contribute towards integrating larger shares of renewables onto the power systems in the Nordic countries.
Consumption flexibility through aggregation also gives Distribution System Operators (DSOs) the opportunity to handle local network constraints and utilise the existing distribution network in a more efficient manner.
There are several regulatory challenges that need to be dealt with for aggregation to be developed in a socially rational way. NordREG strongly believes that there is a need for developing a harmonised Nordic regulatory framework. NordREG also stresses that the advantages of aggregation must be weighed up against costs accrued in the need for future adjustments to metering and settlement systems.
Aggregation of consumption flexibility may be handled by electricity suppliers or independent stakeholders. The term ‘independent aggregator’ refers to aggregators that offer services to an electricity customer without entering into an agreement with the customer’s existing supplier. EUs ‘Clean Energy Package’ (CEP), requires that the other three Nordic countries develop methods allowing independent aggregators to gain access to the various energy markets. The Norwegian Energy Regulatory Authority deems it advisable that Norway participates in the development of a common Nordic regulatory framework for independent aggregators.
NordREG recommends that the Nordic energy ministries develop a coordinated high-level Nordic roadmap for more detailed analyses of opportunities and challenges regarding independent aggregators. Furthermore, NordREG suggests that the ministries designate relevant authorities and stakeholders to carry out this work.
Alexander Kellerer, Adviser, Section for Wholesale Markets
Ove Flataker, Director, The Norwegian Energy Regulatory Authority