Ofgem greenlights impartial aggregators in wholesale flexibility market

Ofgem has accepted a proposal to allow impartial aggregators to have interaction within the wholesale electrical energy market.

This choice is seen as having potential implications for the power sector, because it introduces new gamers to the market.

Below the accepted plan, impartial aggregators will be capable to provide flexibility providers on the wholesale market, increasing participation past conventional stakeholders.

The Affiliation for Decentralised Vitality (ADE) has welcomed Ofgem’s choice, viewing it as a major step that would affect the long-term affordability of power for customers and companies.

Sarah Honan, Flexibility Coverage Supervisor on the ADE, stated: “At this time is a watershed second for the UK flexibility sector. Because of a choice by Ofgem, the wholesale market – the place the overwhelming majority of electrical energy is purchased and bought – will open its doorways to members past suppliers, mills, and monetary merchants.

“Unbiased aggregators of demand flexibility, who will play a vital function in decarbonising our electrical energy system, will be capable to take part in our largest market. It’s doubtless that we are going to look again on this choice as heralding a step-change in how we think about electrical energy market buying and selling each within the wholesale market and past.”