HOW DEMAND SIDE CAN PROVIDE OPERATIONAL FLEXIBILITY TO POWER SYSTEM THROUGH A HOLISTIC AGGREGATOR CONCEPT

More dynamics in the power systems leads to an increasing need for operational flexibility. Integration of non dispatchable power generation and changes in consumption patterns due to implementation of heat pumps and electric vehicles are examples of drivers behind this development. Traditionally such changes have been met by capacity expansions through central power generation facilities and grid enforcements. Utilizing flexibility options at the demand side is an alternative approach. Currently there exists an unexploited potential for flexibility at demand side, and implementation of Smart Grids technologies will increase this potential further through demand response, distributed dispatchable generation and distributed storage. Existing market regime already supports business opportunities for flexibility, but demand side options rarely have access to such markets. This paper describes benefits from flexibility in different perspectives. Current Norwegian power markets are described with the focus on business opportunities for flexible production and consumption. Although several markets and contract types exist where flexibility can make profit, barriers prevent demand side participation. A demand side flexibility aggregator concept is proposed to overcome these obstacles and increase profitability for all parts of the value chain. Profitability is improved through a holistic approach: on one side all flexible demand side technologies are included and on the other side revenues are considered from all available markets and agreements.