Business strategies for flexibility aggregators to steer clear of being “too small to bid”

Kubli, Merla; Canzi, Patrizio

doi:10.1016/j.rser.2021.110908

Please use this identifier to cite or link to this item: https://doi.org/10.21256/zhaw-28404

Publication type:	Article in scientific journal
Type of review:	Peer review (publication)
Title:	Business strategies for flexibility aggregators to steer clear of being “too small to bid”
Authors:	Kubli, Merla Canzi, Patrizio
et. al:	No
DOI:	10.1016/j.rser.2021.110908 10.21256/zhaw-28404
Published in:	Renewable and Sustainable Energy Reviews
Volume(Issue):	143
Page(s):	110908
Issue Date:	17-Mar-2021
Publisher / Ed. Institution:	Elsevier
ISSN:	13640321
Language:	English
Subjects:	Flexibility aggregation; Business model; Virtual power plant; Prosumer; System dynamics; Balancing power market
Subject (DDC):	333.79: Energy
Abstract:	Flexibility aggregation is seen as a promising solution to facilitate the integration of solar and wind power into the energy system. While the solution is well known, it remains fairly uninvestigated in terms of the components needed to result in a business success. This study investigates the long-term business dynamics of flexibility aggregators with a simulation model. Our study finds that new entrants in flexibility markets are likely to be trapped in a “technology valley of death” situation on account of being “too small to bid”. Therefore, we test different strategies to overcome this critical initial phase. Diversifying revenue streams and introducing a leasing offer for flexible prosumers to enlarge the customer base are promising strategies to reach the relevant bidding size required to compete in balancing power markets. The analysis offers insights on the long-term uncertainties of the business case. The findings of this paper contribute to the discussion on how to develop functioning and robust business models for low-carbon flexibility. Furthermore, the study is of high practical relevance, as one of the burning questions for new entrants in flexibility markets is addressed with a concrete strategy analysis.
URI:	https://digitalcollection.zhaw.ch/handle/11475/28404
Fulltext version:	Published version
License (according to publishing contract):	CC BY-NC-ND 4.0: Attribution - Non commercial - No derivatives 4.0 International
Departement:	School of Engineering
Organisational Unit:	Institute of Sustainable Development (INE)
Appears in collections:	Publikationen School of Engineering

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Kubli, M., & Canzi, P. (2021). Business strategies for flexibility aggregators to steer clear of being “too small to bid”. Renewable and Sustainable Energy Reviews, 143, 110908. https://doi.org/10.1016/j.rser.2021.110908

Kubli, M. and Canzi, P. (2021) ‘Business strategies for flexibility aggregators to steer clear of being “too small to bid”’, Renewable and Sustainable Energy Reviews, 143, p. 110908. Available at: https://doi.org/10.1016/j.rser.2021.110908.

M. Kubli and P. Canzi, “Business strategies for flexibility aggregators to steer clear of being “too small to bid”,” Renewable and Sustainable Energy Reviews, vol. 143, p. 110908, Mar. 2021, doi: 10.1016/j.rser.2021.110908.

KUBLI, Merla und Patrizio CANZI, 2021. Business strategies for flexibility aggregators to steer clear of being “too small to bid”. Renewable and Sustainable Energy Reviews. 17 März 2021. Bd. 143, S. 110908. DOI 10.1016/j.rser.2021.110908

Kubli, Merla, and Patrizio Canzi. 2021. “Business Strategies for Flexibility Aggregators to Steer Clear of Being “Too Small to Bid”.” Renewable and Sustainable Energy Reviews 143 (March): 110908. https://doi.org/10.1016/j.rser.2021.110908.

Kubli, Merla, and Patrizio Canzi. “Business Strategies for Flexibility Aggregators to Steer Clear of Being “Too Small to Bid”.” Renewable and Sustainable Energy Reviews, vol. 143, Mar. 2021, p. 110908, https://doi.org/10.1016/j.rser.2021.110908.