Demand Response Aggregation Service
Aggregate business energy loads for demand response programs
Overview
Demand response aggregators earn 20-40% of incentive payments from utilities.
Managing 5-20 MW of customer load generates $200,000-$1,000,000 annually with 80-95% margins.
In 2025, grid flexibility programs pay businesses to reduce load.
Services include demand response enrollment and aggregation, load curtailment coordination, automated demand response systems, utility program management, customer incentive payment distribution, and ongoing performance optimization.
Successful aggregators recruit businesses with flexible loads, automate curtailment when needed, maximize incentive payments, handle utility program compliance, and share payments with customers.
Large energy users as clients.
Marketing through utility programs, energy consultants, facility managers, industrial businesses, and cold storage/warehousing.
Required Skills
- Demand Response Programs
- Utility Wholesale Markets
- Load Aggregation
- Automated Controls
- Industrial Processes
- Customer Recruitment
Pros and Cons
Pros
- Utilities pay for demand response capacity
- Revenue share model low-risk for customers
- Automated systems reduce operational effort
- Growing grid flexibility programs
- Helps businesses earn passive income
Cons
- Complex utility program rules
- Need to aggregate significant load (MW)
- Customer recruitment challenging
- Performance penalties for non-delivery
- Only viable in certain utility territories
How to Get Started
- Learn demand response programs in your region
- Develop aggregation and automation platform
- Recruit large energy users to participate
- Enroll aggregated load in utility programs
- Automate demand response events
- Manage utility compliance and reporting
- Distribute incentive payments to customers
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