BY AGLAÉ BANGE
The expansion of renewable energy throughout the 2010s stimulated growth in aggregation, a process that enables power generation assets to participate in electricity markets.
After 2020, aggregation in Japan faced a critical turning point with the large-scale deployment of BESS assets and proliferation of power exchange platforms, significantly improving the profitability of pooling assets when trading.
One major consequence is the growing number of players and increased competition, particularly in AI-based optimization software, which is especially critical since a BESS station can participate in several different markets on the same day.
While the aggregation and BESS markets are far from saturated, bid and clearing prices are expected to drop by 2030, a trend that is already becoming increasingly apparent. In this context, how will the continued development of BESS projects impact aggregator revenue and market structure?