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Published: 2/9/2021. Updated:

NERC: CONDITIONS ARE ENSURED FOR INDEPENDENT ELECTRICITY DEMAND AGGREGATORS TO COMMENCE THEIR ACTIVITIES


Considering the amendments of the Law on Electricity regarding the new activity in the electricity sector – electricity demand aggregation – the National Energy Regulatory Council (NERC) has approved the declaration form* that shall be submitted to NERC by independent electricity demand aggregators wishing to conduct this activity.

“This will be a breakthrough in the attempt to virtually balance the generation of electricity from renewable energy sources and to further promote the development of these electricity producers without additionally investing in the infrastructure. This change will definitely generate benefits for the users: firstly, due to the lesser balancing costs of renewable energy producers as well as due to the provision of flexible services that will allow making the electricity consumption schedule more effective and, in this way, receive real financial benefits,” states the Chair of NERC Renatas Pocius.

The independent electricity demand aggregation is the coordination of changes in the electricity demand of one and/or a group of several users and/or a group of other users and/or electricity production coordination seeking to sell, buy or submit the unused or produced electricity and/or unused or supplied capacity at an auction in electricity, balancing and reserve capacity markets. When conducting their activities, the independent electricity demand aggregators shall not be related to the suppliers of their customers.

New market participants – independent electricity demand aggregators – will increase the competition in the markets of electricity, balancing and reserve capacity, create opportunities for the optimal use of the capacity of transmission and distribution networks as well as generation capacity and ensure more efficient consumption of electricity.

The authorisations to conduct the activities of independent demand aggregator will be issued to persons that have submitted the declaration to the NERC for such authorisation and which are not subject to bankruptcy, reorganization and/or liquidation proceedings. If the person corresponds with the provided requirements, the authorisation is issued the following working day after the submission of the declaration or not later than the day indicated in the declaration.

* The independent electricity demand aggregators, wishing to conduct their activities, will have to fill in the same declaration form which is used by independent electricity suppliers and submit it to the NERC.

 

More detailed information on the NERC meeting of 4th February 2021 can be found HERE.