Three things you need to know before trusting a demand response aggregator

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Burford: All aggregators are not equal.
Burford: All aggregators are not equal.

Demand-side response 
is gaining momentum. Aggregator consolidation may be on the cards, increasing 
the importance of picking the right partner, says Restore’s Louis Burford.

The competition to pay companies to harness their flexibility is heating up. Some traditional utilities are trying to catch up and are investing in aggregator-type business models or partnerships with aggregators.

Meanwhile some aggregators are taking a degree of risk by bidding for contracts that they cannot guarantee to fulfil.

At the same time, price uncertainty in schemes like the capacity market combined with policy and regulatory changes that will affect generation forms of demand-side response, could have a serious impact on revenues for some aggregators and their customers.

All of which underlines the need for businesses to undertake robust due diligence when it comes to selecting a partner
 to monetise their flexibility. All aggregators are not equal, and it is likely that some will not be in business in the next 12-24 months.

Remember the following three things before trusting a DSR aggregator:

  1. The best-in-class technology

Having the best technology
 is critical: firstly to identify flexibility within sites and most crucially to then maximise its value by enabling smart trading across all available markets.

Restore describes itself as a technology company rather than an aggregator and that is why it developed the patented FlexTreo platform, to capture all existing market opportunities, as well as emerging revenue streams.

  1. The longest proven track record


Anybody can claim they have the best software and the optimal trading strategy. That is where a strong track record will separate the market. For example, Restore and those that are delivering the revenues they promise, versus those that are not.

  1. The most result-driven

You have to be able to give people comfort that they are backing the right horse and will receive the value they are promised. Otherwise it is bad for business, bad for demand-side response and, ultimately, bad for consumers. Restore has consistently delivered those elements. As a result, the company is ranked 41st in Deloitte’s Technology Fastest Growing EMEA Companies 500-List.

So while it appears to be a seller’s market for flexibility, choose carefully where you put it. Doing so will ensure maximum returns with minimum fuss.

For more information, visit restore.eu.

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