In this model the Energy Services Company (ESCO) substitutes the customer as the contact and contractual party for the aggregator of the (explicit) Demand Response (DR). This not only allows the ESCO to create an integrated service and a single Active Building Energy Performance Contracting (AEPC) contract, but it also allows the aggregator to benefit from the potential of ESCO to start pooling flexibility across different buildings and different customers.

This will improve the aggregator’s aggregating capacity and allow him to reduce the number of contractual partners. On the other hand, he will lose some control over the end customer which could represent a barrier to implement this model from a commercial and strategic point of view. This may be compensated by the opportunity of more strategic cooperation with ESCOs, access to a large existing ESCO market and economies of scale.

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