Will Aggregator Reduce Renewable Power Surpluses? A System Dynamics Approach for the Latvia Case Study

Abstract

Power demand-side management has been identified as one of the possible elements towards a more flexible power system in case of increased capacities of variable renewable energy sources—solar and wind energy. The market coordinators or aggregators are introduced to adjust the electricity consumption by following the market situation. However, the role of aggregators is mainly analysed from the economic perspective, and the demand side management is performed to maximise the utilisation of low price power during off-peak hours. However, this research focuses on analysing the introduction of aggregators as a future player to increase the total share of renewable power and decrease the surplus solar and wind electricity occurrence. An in-depth system dynamics model has been developed to analyse the hourly power production and power consumption rates at the national level for the Latvia case study. The results show that introducing aggregators and load shifting based on standard peak shaving can increase the share of surplus power and does not benefit from increased utilisation of solar and wind power. On the contrary, demand-side management based on available RES power can decrease the surplus power by 5%.

Keywords

• demand-side management
• aggregator
• variable renewable energy sources
• system dynamic modelling
• Latvia