Energy aggregation can take form in three ways: 1. Buyer energy aggregation 2. Project aggregation 3. Community choice aggregation
As an individual consumer, your company may have limited ability to negotiate prices or energy plans. However, if you pool your energy procurement with other companies, forming one large entity, your electricity or natural gas use is more significant. Utility companies in deregulated markets will be more inclined to offer concessions or incentives to entice you to sign with them.
Project aggregation is the creation of a portfolio of energy projects that are then sold to utility users as a package.
Also known as municipal aggregation, community choice aggregation (CCA) allows local governments to procure power for businesses and residents.
Because of the nature of pooling businesses' buying power and consumption, energy aggregation has the following benefits in the succeeding slides.
Just as buying a truckload of paper gets you better pricing than purchasing one ream, buyer energy aggregation saves you money by giving you access to better pricing. Aggregation may also save on transaction costs as these expenses are spread across all the members in your collective rather than being born by your business alone.
In the same way, your larger, pooled block of business can open up better pricing options, it can also give you access to more favorable contract terms.
You limit the financial risk by distributing the consequences of a single delay, output decrease, or failure across the pool of buyers. You also help ensure your contract continues to provide the agreed-upon load, even if one project goes offline or underperforms.
An energy consulting firm may be able to help you form or join a group of other buyers. Until you can compete with Amazon or the Royal Bank of Canada, you can combine forces with other companies to procure your energy at preferred rates and terms through an energy broker like DNE.