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Electricity

Alberto's Workshop

Event Highlights

8.11.2017

Demand Participation and Demand Response in Electricity Markets: which way forward?

The ongoing energy transition, with the resulting penetration of renewable energy sources, requires a higher level of flexibility in the electricity markets. Demand, through a […] read more

Climate

News climate carbon market video highlights

Event Highlights

12.10.2017

Video highlights from Carbon Market Workshop

Organised by FSR Climate within the framework of the LIFE SIDE project,  the Carbon Market Workshop gathered carbon market experts worldwide to discuss and exchange experiences in […] read more

Energy Policy

new york

Event Highlights

3.07.2017

Regulatory Futures Workshop

On 9-10 June 2017, Jean-Michel Glachant, Director of the Florence School of Regulation, attended the Regulatory Futures Workshop at Columbia University School of Law in […] read more

Electricity

Florence

Event Highlights

30.06.2017

FSR Executive Seminar: Debating the future of EU Power System Operation and Solidarity

On Thursday 22 June 2017, the Florence School of Regulation hosted the 7th edition of its Executive Seminar. On an annual basis, this exclusive event […] read more

Electricity

Event Highlights

28.06.2017

Design the electricity market(s) of the future | Conference Highlights

The European electricity system is undergoing a profound change due to its transition to a decarbonized power system. Decarbonization along with digitalization and decentralisation is […] read more

Gas

policy workshop may 2017

Event Highlights

31.05.2017

The end of the long-term contracts era: which consequences for the EU Gas Market?

Long-term contracts (LTCs) used to be the most commonly used supply agreements in the gas sector and necessary to ensure the security of supply.  Indeed, […] read more

Electricity

Event Highlights

15.05.2017

Moving the Electricity Transmission System Towards a Decarbonised and Integrated Europe

Is Europe heading towards a seamless transmission system for electricity? The establishment of a seamless electricity transmission system and the completion of a single market […] read more

Energy Union Law

5th Vienna Forum on European Energy Law

Event Highlights

10.05.2017

Vienna Forum on European Energy Law

The slides from the 5th Vienna Forum on European Energy Law are now available. Topics discussed at the forum included the new energy market design, […] read more

Energy Union Law

Event Highlights

30.04.2017

Maroš Šefčovič addresses the Energy Law & Policy workshop “Clean Energy: The New Legal Challenges”

Vice-President of the European Commission and head of the Energy Union, Maroš Šefčovič, gave a keynote address at the Energy Law and Policy Workshop on the […] read more

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Alberto's Workshop

Demand Participation and Demand Response in Electricity Markets: which way forward?

- Electricity

The ongoing energy transition, with the resulting penetration of renewable energy sources, requires a higher level of flexibility in the electricity markets. Demand, through a more active participation in the various electricity markets, is widely recognised as one of the best solutions to provide additional flexibility. If compared with traditional flexibility resources, demand participation is often cheaper and can contribute to lower electricity prices for final customers. Such participation, given the rapid development of smart-metering and ICT solutions, is no longer impeded by technological barriers. However, an enabling regulatory framework and one or more viable business models are needed.

The Florence School of Regulation opened its 2017 – 2018 Regulatory Policy Workshop Series with a full day event on Demand Participation in Electricity Markets and Demand Response: Regulatory Framework and Business Models, on Friday 27th October.

The Workshop, starting from the proposals of the European Commission in the “Clean Energy for all Europeans” Package, attempted to identify the most appropriate regulatory framework and business models that can enable demand participation in markets on non-discriminatory terms.

During the extensive debate it was clear that several critical points must be addressed by the EU, if the Union is serious in promoting the uptake of demand participation and demand response. In particular, implicit demand response requires that final customers can have the possibility to be more directly exposed to dynamic pricing, e.g. via smart meters, short settlement periods and variable prices. Of course, customers not willing to be subjects to the vagaries of the wholesale market should still have the possibility to sign more stable and fixed-price contracts with their energy suppliers. On the other hand, explicit demand response rests on the existence of aggregators that may be independent or not from other actors of the value chain. The nature of such aggregators, their rights and obligations were undoubtedly the most contentious topics. Indeed, on these issues it was not possible to reach a final agreement between the different stakeholders attending the workshop.

A consensus was achieve only on the fact that flexibility from the demand side will be an essential aspect of the electricity markets of the future. For this reason, more market monitoring and cooperation among the companies and the relevant institutions will be necessary.

171027 Demand Participation in Electricity Markets and Demand Response