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.
