The role of aggregators in optimizing electricity generation and demand through virtual power plants (VPPs) has become predominant in the energy transition. However, aggregators face strong competition from traditional retailers who are developing similar demand-side response (DSR) solutions. In order to build a successful aggregator model, utilities and investors need to address the question of how to leverage regulation and opening of energy markets to facilitate VPP development. Regional and local regulators are encouraging participation of demand response and aggregators in organized energy markets, and TSOs in some countries have redesigned their market rules to accommodate DSR in the system. This has generated a broad range of mechanisms and programs in recent years, allowing aggregators to ramp up revenues over short periods in order to benefit from acceptable market conditions and get access to real-time price signals. The combination of favorable regulation and opening of energy markets has led to a proliferation of aggregators across regions.
