Regulatory priorities for enabling DSF

There is a general consensus that given the need to evolve towards a climate neutral economy by 2050, a high share of renewable power generation will be based on solar and wind energy. This is expected to create more need for flexibility at transmission, but also increasingly at distribution level. The European energy policy recognizes this and some high level guiding principles have been introduced through the Clean Energy Package and more recently the Green Deal. These policies and regulatory frameworks put the final customer at the centre of the energy transition. As a matter of fact, the customer is not only consumer but can also be a producer of electricity and, in both cases, can offer flexibility to various market participants. Such “demand side flexibility” facilitates the large-scale integration of renewables and new loads, such as electro mobility or power to gas and power to heat. It also brings the question of more interaction between the traditional wholesale and retail market levels.

This study focuses on the regulatory challenges related to enabling Demand Side Flexibility (DSF), with the aim to assist the European Commission in defining the needs and scope of a regulatory priority list for DSF by specifying policy options in view of implementing new or updating existing network codes by 2025.

Directorate-General for Energy, Küpper, G., Jakeman, A., Staschus, K., Hadush, S. Y. (2020).

Publication Office of the European Union.

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“The study is carried out for the European Commission and expresses the opinion of the organisation having undertaken them. To this end, it does not reflect the views of the European Commission, TSOs, project promoters and other stakeholders involved. The European Commission does not guarantee the accuracy of the information given in the study, nor does it accept responsibility for any use made thereof.”