Independent Aggregator

Independent Aggregator is a Balancing Service Provider (BSP) that activates resources from another Retailer (RE) or Balance Responsible Party (BRP) without an explicit agreement. The main driver for introducing a new role in the market is to increase the volume of flexibility in the markets. Introduction of such a new market player will introduce some changes into calculation of imbalance adjustment for the BRP, compensation for the BRP, a new message for data exchange and regulation imbalance for the BSP acting as an independent aggregator. eSett will play a key role in the handling of imbalance adjustments, and invoicing of the balancing services, compensations and regulation imbalances. The development of the model is ongoing together with Nordic Transmission System Operators (TSOs) and eSett, with a stepwise delivery per country and balancing service.

The first go-live is planned for the aFRR energy market in Finland around March-April 2025.

Article 17 of Directive (EU) 2019/944 of the European parliament and of the council sets the right for each market participant engaged in aggregation, including independent aggregators, to enter electricity markets without the consent of other market participants. The European Union is preparing a Network Code for Demand Response, which will include more detailed guidelines on matters such as independent aggregation models and market access. ENTSO-E and the EU DSO Entity submitted the draft Network Code to ACER in May 2024, and it is expected to go through the process of the European Commission by the end of 2024. Learn more about it from here.

The national regulation and the commissioning timeline of independent aggregator are off sync within the Nordics. This may result in some different national interpretations, and the go-lives will be decided per country and balancing service type. However, eSett and Nordic TSOs aim in co-operation for as harmonised model as possible within the Nordics.

Key features with the new independent aggregator model in eSett are:

1. Activation: BSP (independent aggregator) activates balancing services from the resources of another BRP or RE without any explicit agreement.
2. Data exchange: Introduction of a new message Delivered Reserves (DERI) for the reporting of delivered (and in some cases misdelivered) balancing service energy.
3. Imbalance adjustment: The calculated imbalance adjustments for BRPs’ imbalance settlement will be based on delivered reserves instead of current activated reserves where applicable.
4. Compensation: There will be a financial compensation between the BSP and BRP in case of independent aggregation. The compensation will be calculated and invoiced by eSett as a part of the normal operations and weekly invoicing.
5. Regulation imbalance: eSett shall calculate if there are differences between the balancing service activation from the TSO and actual delivery from the BSP where applicable. TSOs may choose to apply a price and fee for regulation imbalance for BSPs similarly as for the BRP imbalances.

Go-live for aFRR energy market in Finland – March-April 2025

Please contact eSett latest during November 2024 if a BSP role (independent aggregator) is needed for your company for the go-live of Finnish aFRR energy market. This is to ensure that there is enough time to sign the necessary settlement and bank agreements and set up the BSP role into eSett’s system before the go-live. Exact date for the go-live has not yet been agreed.

Commissioning plan

eSett has published a commissioning plan for the introduction of independent aggregator in eSett. The commissioning plan describes the planned independent aggregator changes in a more detailed level. The plan will be updated based on the updated information in the project.