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As part of its wholesale electricity market monitoring, ACER looked at the different electricity balancing prequalification approaches in Europe.
Overall ACER’s study finds that there is considerable scope for grid operators to reduce market entry barriers to new and small market participants, including small-scale demand response, in providing balancing services. The ACER study showcases some practices that could be considered by TSOs to improve and simplify the product prequalification process for these new and smaller market participants, including demand response.
How does this help EU security of energy supply and consumers?
Demand response programmes allow consumers to adjust their consumption at key times to help grid operators to manage peak electric demand and lower system costs. Currently consumers do not participate to a large extent in electricity markets. However, the flexibility that smaller market participants (including demand response, distributed generation and energy storage solutions) could provide is needed more and more for security of supply.
ACER strives to remove barriers that hamper demand response entering and participating in markets including enabling demand-side participation in market-based procurement of services needed by the grid operators.
