Advice on Ensuring Market and Regulatory Arrangements help deliver DemandSide Flexibility

CEER (Council of European Energy Regulators) –

In 2013, the Council of European Energy Regulators’ (CEER) Sustainable Development Task Force (SDE TF) committed to produce a report exploring the emergence of demandside flexibility (DSF) within the regulated electricity sector. Demand-side flexibility has the potential to offer a range of benefits, such as reduced system/consumption costs, enhanced generation adequacy and greater accommodation of intermittent renewable energy sources (RES). However, appropriate market and regulatory arrangements must be in place before this potential can be realised. This paper, together with its companion annexes and consultation document, sets out the background, definitions, opportunities and barriers associated with the emergence of DSF. It concludes by offering a series of high level principles which regulators consider should govern how DSF operates as well as a number of short to medium term recommendations for regulators and other interested parties to take forward. This CEER Advice supports regulators’ further work in this area within CEER, ACER and the European Commission’s Smart Grids Task Force, which in turn will help inform wider developments in European energy policy and ensure the market and regulatory arrangements help deliver demand-side flexibility.

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