The Impact of Independent Aggregators on the Electricity Market – Slovenian Case Study

Independent aggregators are new entrants in the electricity market. Their operation may cause deviations to other market participants, notably electricity suppliers, which may lead to compensation obligations. Different models already exist to regulate the relationship between independent aggregators and suppliers, each with advantages and disadvantages. This paper discusses the current state of independent aggregation in Slovenia, including a Cost-Benefit analysis of the independent aggregator operation in the Slovenian electricity market. Based on an estimate of the quantities that an independent aggregation could offer on the market through Demand Response, the impact of lower prices on the wholesale market is determined for the day-ahead and intraday markets, considering the actual supply and demand curves. Given the different models, for managing supplier-independent aggregator relationships, which are also presented in the SWOT analysis, the impact on the balance of market participants, including end users involved in the demand response, is also assessed.