Energy Weekly Publications #08 Aggregation

20 February 2023

The dynamic development of renewable energy in European Union countries results in the decentralisation of electricity generation and creates the need to involve all groups of consumers in the functioning of electricity markets. Industrial, commercial and household consumers should be able to offer their flexibility of consumption and availability of self-generated electricity. Their active participation in the market may be facilitated by a so-called aggregation services.

Directive 2019/944 of the European Parliament and of the Council, including, inter alia, provisions on aggregation, has not yet been fully implemented into the Polish legal system. According to the government’s draft law (Draft UC74), aggregation is defined as the activity of combining the volume of capacity or electricity offered by electricity consumers or generators, taking into account the technical capacities of the network to which they are connected, for the purpose of selling electricity, providing system services or flexibility services on electricity markets.

Aggregation is therefore intended to provide real support for the participation of smaller consumers in the so-called demand response, or flexibility services, associated with changes in electricity consumption in reaction to market signals, including current prices and applicable financial incentives.

Aggregation activities should take place on the basis of a separate aggregation contract between the aggregator and the electricity final consumer, electricity generator or owner of electricity storage. The aggregator should have the right to enter the electricity market without the consent of other market participants.

However, in accordance with the proposed regulations, the commencement of aggregation activities conducted on the territory of the Republic of Poland will require an entry into the public register maintained by the President of the Energy Regulatory Office.

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Marek Grzywacz, Ph.D., Counsel

Paulina Harhaj, Junior Associate