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Aggregation
offers increased savings to participants as a result of combining each member's
energy requirements into a larger buying block. In order for the aggregation to
be effective, it must offer potential-suppliers benefits that result in lower
energy costs for the members.
These Benefits Include:
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Predictability
of Load: By properly
compiling load data, the aggregation provides suppliers with greater
predictability. With greater predictability, the supplier can better manage
their energy purchases. Another contributing factor to load predictability is
the consistency (flatness) in which the load is used by the members. The
flatter the load, the lower the price. The more the load consumption
fluctuates, the higher the price is likely to be. Aggregations that can balance
their load profile with members of different usage patterns can help flatten
their overall load-shape.
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Size
of Load: More is better. Larger blocks of power are easier
for suppliers to acquire and move. Reduced Costs of Marketing: An
aggregation offers potential suppliers the opportunity to serve a large volume
of customers at a fraction of the cost of marketing to them individually.
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Additional
Services: By
serving the aggregation's electricity needs, the supplier has a unique
opportunity to offer additional services to the members including demand
management.
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