Drax-owned business energy supplier Haven Power has struck a deal with demand-side response (DSR) firm Kiwi Power so that the aggregator will be recommended to the supplier’s customers seeking to monetise energy flexibility.
The deal comes two weeks after Kiwi Power scooped significant volume in the Transitional Arrangement Capacity Auction. The aggregator will be looking to sign up businesses to provide turn down demand-side response in order to fulfil the 60MW of contracts it secured at £45,000 per megawatt.
Haven said it selected Kiwi “following a rigorous selection process”.
Kiwi Power CEO, Yoav Zingher, said the deal meant Haven could offer customers “not only a great deal through their supply contract, but also enable them to contribute to a greener, smarter and more resilient energy future for the UK.”
Haven Power COO, Neil Isaacson, said the agreement would make DSR “more accessible and simpler for businesses to implement.” He added that Kiwi’s technology was “best in class”.
The move comes as many aggregators predict consolidation in the market. Speaking to The Energyst, Restore’s UK lead Louis Burford suggested the current market, whereby around 20 aggregators are currently trying to scale their portfolios, will be reduced to “a handful” over the next 12 – 24 months.
Others, such as Endeco CEO Michael Phelan, agree that in the medium term, the aggregators with “strong technology platforms as opposed to marketing capability” will be those left standing. He thinks roughly half of aggregators fall into the latter category.
Meanwhile, fluctuations in capacity market prices will hurt those firms with significant portfolios committed to the scheme. That may be compounded by revenue commoditisation as more volume enters flexibility markets, although new markets, technologies and buyers may emerge to offer upside, according to market analysts.
Read more about demand-side response with insight from end users, energy suppliers and aggregators, via our 2016 demand-side response report. End users interested in monetising flexibility should also register for a free ticket for our 2017 DSR Event, held in London on 7 September.