In this variation, the Energy Services Company (ESCO) implements explicit Demand Response (DR) and sells it to the flex requesters. This means that the ESCO plays itself the role of the aggregator and explores and manages the flexibility potential at the customer’s building site(s). The ESCO provides this flexibility directly to a Distribution System Operator (DSO)/Balance Responsible Party (BRP)/Transport System Operator (TSO) who is willing to pay certain fees for the use of flexibility.

The ESCO will need to be able to deliver the flexibility and manage the explicit DR service, meaning he will need to master the full technical implementation, incl. Software and active control systems across multiple buildings. He will also need to negotiate and signs direct contracts with DSO/TSO’s.

This variation of the explicit DR-driven AEPC business model does not require the ESCO to interact anymore with another (market) aggregator, which opens his business fully to this new market of DR in buildings. This may lead to evolutions in the market were aggregators and ESCO end up merging or aggregators being acquired by ESCOs, fuelling further growth. On the other hand, the ESCO acting as a full autonomous aggregator may lead to them being considered as direct competitors to certain aggregators, which could also hinder the market development.

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