Demand side flexibility

Active management of electricity demand and consumer participation in electricity markets.

The new European regulatory framework promotes consumer empowerment and their active participation in electricity markets. In a context of decarbonization and increasing penetration of variable renewable energies, demand management and demand side flexibility, a figure recognized in the Electricity Sector Law, are becoming essential instruments to provide flexibility and stability to the electricity system. Digitalization, the deployment of smart meters, and technological progress allow consumers to actively manage their consumption, produce energy as prosumers, participate in markets either directly or through aggregation, and optimize their electricity bill.
At SD Verdia we have solid experience in energy regulation and electricity markets to advise consumers, aggregators, and investors on the design and implementation of demand management and aggregation schemes. Our team supports clients in adapting to this new regulatory framework, facilitating access to markets and the monetization of the flexibility provided, in coordination with system operators and the competent authorities.

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Frequently asked questions about demand aggregation

We answer the most common questions from consumers, aggregators and investors.

What is demand aggregation and who is the independent aggregator?

Demand aggregation consists of grouping the consumption —and, where applicable, the generation or storage— of several consumers in order to participate jointly in the electricity markets. The independent aggregator is the market participant that provides this service without being linked to the customer's supplier; it was introduced in Spain in 2020 and is driven by Directive (EU) 2019/944 and Directive (EU) 2024/1711.

What requirements must be met to operate as an independent aggregator?

You must submit a responsible declaration (declaración responsable) to MITECO using the official form, provide a guarantee before the system operator, comply with the operating procedures and, where applicable, act as a market agent. The CNMC publishes a monthly list of registered aggregators. At SD Verdia we support the entire set-up and registration process.

What regulations govern demand aggregation in Spain?

The framework is made up of Directive (EU) 2019/944 —amended by Directive (EU) 2024/1711—, the Electricity Sector Act (Law 24/2013) and Royal Decree 88/2026, which regulates the supply, retail and aggregation of electricity and sets out the minimum content of the aggregation contract.

What benefits does demand aggregation bring to consumers and businesses?

It enables participation in balancing and ancillary-services markets, monetising the flexibility of consumption and optimising the electricity bill, while providing stability to the system. Prosumers and self-consumption can participate directly or through an aggregator.

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