Wednesday, September 29, 2021
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What is a Demand Response (DR) Aggregator?

Edgecom Energy is an Independent Electricity System Operator (IESO) market participant that acts as a capacity aggregator for participation in the Capacity Market. Aggregators simplify participating in the Capacity Auction for their customers and reduce the number of moving parts the IESO has to deal with on their end.

The IESO prefers not to deal with smaller accounts due to the extensive administrative work required to enable market participation and effective coordination. Companies like Edgecom Energy step in to connect individual capacity contributors to the IESO administered market by aggregating the small individual bids into larger accounts. This directly benefits the IESO as they can deal with a smaller number of larger accounts rather than hundreds of small accounts. This also allows the customer to reap the program's benefits while maintaining focus on their own business and doing what they do best. Edgecom Energy streamlines the process and does all the heavy lifting, alleviating the need for the customers to get involved in the tedious procedures associated with participating in the complex electricity market.

As the aggregator, we are responsible for informing participants of the standby and activation calls made on demand by the IESO. In conjunction with the participant, the aggregator is also accountable for identifying baselines and targets and submitting reports on fulfilment. For this, aggregators charge a fee. Therefore, a good aggregator should provide transparency on the process and related charges, including the percent of payments allotted to the aggregator and participant.

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