Aggregation functions are mediators between electricity consumers, electricity market players and the network operators:
they collect the requests for active demand services coming either from market players or network operators,
they pool the flexibilities offered by willing consumers to be packaged into active demand services,
they offer flexibilities to electricity market participants and/or network operators, according to contractual deals which value flexibility properly.
In ADDRESS, each willing consumer provides the aggregation functions with modifications of his/her consumption profile: the aggregation functions are therefore in charge of selling a deviation from the forecasted level of demand, but not a specific level of demand. The resulting functional architecture involves three critical building blocks, the costs of which are examined in a specific deliverable .
1. The interface between consumers and aggregation functions, also called the energy box (EBox): it aims at optimizing and controlling the chosen appliances within each consumer home, which will deviate its demand from the usual profile. ADDRESS has designed and developed a prototype EBox which has been tested to account for 4 types of home loads: shiftable, interruptible, thermal and non-controllable loads. The EBox is a local optimizer tuned for each customer: it operates and controls the connected electric appliances. Optimization criteria are based on consumer choices in terms of economic savings and/or comfort.
2. The aggregation function uses a Tool box (called Aggregation Tool Box or ATB), a prototype of which has been developed and field validated by the ADDRESS partners . This Tool box allows for:
the forecasting of consumer consumption and flexibility,
the forecasting of short term market prices (i.e. the prices that active demand buyers are expected to pay willingly in the different active demand markets),
the settlement and billing where incentives are paid to consumers and active demand buyers are billed
Overall, the tool box optimizes:
the income from selling products to active demand buyers,
the costs to remunerate the customers offering flexibility,
the estimated costs for a possible energy “payback”, i.e. a tolerance specifying an admissible “payback” effect which may occur before or after the delivery of the AD product .
taking into account the possible power constraints coming from the network operators (who validate the technical feasibility on the grid of the active demand programs prepared by the aggregation functions).
3. The communication infrastructure is a service-oriented, web-based system using standardized XML messages, where the communication performance does not depend upon the grid status, and is supported by any physical metrics in an interoperable fashion.
 Carlos Madina, TECNALIA, Deliverable D5.4 (Confidential, for consortium use only)
 The algorithms for the aggregation operations are described in deliverable D2.1.
 The energy “payback” tolerance can be considered as an extension of the service delivery envelope. If the energy “payback” is explicitly considered in the product delivery, it may indeed happen prior to the “main” product delivery (for instance charging thermal or electrochemical storage), as well as partly before and partly after.