Load management by aggregating users
In autumn 2020, “Litgrid” signed a contract with the first electricity demand aggregator in Lithuania - Estonian company “FuseBox”. Following the successful testing of balancing services in the Lithuanian transmission system, the new market participant will be able to participate in the Baltic States’ balancing market and trade balancing energy with transmission operators.
“We are ready to work with aggregators to encourage new participants to enter the electricity market. We see the provision of balancing services to an aggregator as a progressive, innovative solution that will provide more opportunities for efficient, flexible and responsive system management. What is completely new is that aggregation will enable the participation of major electricity consumers in the balancing process,” says Giedrius Radvila, the Director of System Management Department of “Litgrid”.
Until June 2020, the balancing market was only open to electricity generators and aggregators who also supply electricity to consumers. Following the Seimas’ approval of amendments to the Law on Electricity, independent aggregators that are not involved in the supply of electricity to consumers can also participate in the balancing market.
The aim of the aggregators is to bring together large consumers in a common system, which would have the opportunity to reduce their consumption in the event of a demand for electricity and contribute to the management of the balance of the system by “freeing up” the power needed at the time.
In this way, aggregators will make it possible to ensure that the supply of electricity in the system matches the demand in a flexible and fast way - in just 15 minutes.
“The aggregators will allow to activate several different consumers as a one-stop shop and negotiate with them to reduce their electricity consumption. This creates opportunities to reduce the cost of electricity consumption, while at the same time attracting more reserve capacity, which is needed to ensure the balance of the electricity system,” commented G. Radvila.
As Lithuania, together with the other Baltic countries, prepares to connect to the continental European electricity grids and to manage the frequency of the systems on its own, the usefulness of such flexible services and the need for them will only grow. The successful cooperation between the transmission system operator and the country’s first demand aggregator is expected to pave the way and encourage more developers and providers of flexible services to enter the market.
Following the Seimas’ approval of amendments to the Law on Electricity, independent suppliers unrelated to the supply of electricity to consumers can participate in the balancing market. Just recently, a contract was signed with “FuseBox”, the first electricity demand aggregator in Lithuania. The new market participant will be able to ensure that electricity supply meets demand in just 15 minutes, participate in the Baltic states’ balancing market and trade balancing energy with transmission operators. This will reduce the cost of electricity consumption.
