Energy | Technical Report
Shift, not drift : towards active demand response and beyond
23 July 2013

Authors: HE, Xian; HANCHER, Leigh; AZEVEDO, Isabel; KEYAERTS, Nico; MEEUS, Leonardo; GLACHANT, Jean-Michel

Editors: ZORN, Annika

• European electricity systems are evolving towards a generation mix that is more decentralised, less predictable and less flexible to operate due to the large scale integration of renewables. In this context, additional flexibility is expected to be provided by the demand side. This implies consumers must be shifted from the current ‘passive’ role to providing ‘active’ demand response. • The objective of the 11th THINK report is to assess how to realise this shift towards active consumers, using a consumer-centred approach. We recognise the need for ‘software’, such as contracts, to engage consumers in addition to the enabling ‘hardware’, such as smart meters and appliances. We propose recommendations for consumer empowerment tools, as well as for market design and regulation that would allow the take-off of active demand response. • A prerequisite of consumer engagement is to have an adequate range of contracts that match different consumer categories. The Think report demonstrates that consumers are diversified both in their flexibility potential and their preferences on a set of criteria that affects their willingness of participation in demand response. We propose a consumer profiling tool that not only empowers consumers to make informed and appropriate choices, but also facilitates intermediaries to valorise active demand response. • Our analysis shows that one single market player might not have incentives to offer an adequate range of demand response contracts. Therefore, it is essential to have diversified market players acting as demand response intermediaries. The entry of new market players, such as consumer cooperatives or third parties from non-electricity sectors, needs to be facilitated. • The THINK report further illustrates that the retail market design needs to be adapted to accommodate active demand response. All consumers should be able to make deliberate choices about their electricity supply, and to valorise their flexibility through active demand response. We propose one such market design referred to as ‘real-time market’. • Given the decentralised and local character of demand response, national authorities may be best placed to implement the necessary measures as proposed in the report. The EU’s role should be focused on promoting contract pilot studies, disseminating the results of decentralised pilot projects, providing guidance or framework regarding consumer empowerment and protection, and rethinking the design of retail market.
logo cadmus Read it on Cadmus Download in open access

LATEST FSR PUBLICATIONS

Dataset
This dataset contains five indicators that describe permit transfers in the EU emissions trading system. The indicators estimated are net entries, net free allowances, financial actors, compliance transfer ratio, and [...]
Policy Brief
The international carbon market landscape contin ued to evolve rapidly in 2024, reflecting the grow ing urgency of addressing climate change and addressing it through cost-effective policy instru ments. Compliance [...]
Working Paper
The EU Electricity Market Design reform requires transmission and distribution system operators to provide transparent information on the available grid capacity for new connections, commonly referred to as hosting capacity [...]

Join our community

To meet, discuss and learn in the channel that suits you best.

scroll

top