Demand response participation in different markets in Europe

Abstract

Maintain a reliable and secure electricity supply while carrying out the goal of decarbonisation that is intended at a European level by 2050 at the same time as the mass integration of renewable energy is a challenge that must be faced nowadays. Reliable and secure electricity supply is achieved with the perfect balance between generation and demand in real time. The intermittency from renewable energy sources generation does not help to maintain this balance, so it is necessary to look for alternatives that improve it. This paper analyzes how, thanks to technology development, demand response could participate in this balance and improve the reliability, security and quality of supply. Through literature review, other benefits that DR deployment could provide to stakeholders are also presented. Many barriers and challenges explain the lack of its implementation among Europe, these are also mentioned. The main challenge is the lack of a common legislative framework in Europe. “Clean Package” which includes a Directive and Regulation of the internal market for electricity, consider fundamental aspects but require some changes on the current national regulations regarding the electricity markets. Criteria are established to analyze the state of deployment and participation of DR in five European countries (Finland, Spain, United Kingdom, France and The Netherlands). After seeing the degree of development, pilot and demonstrations projects in these countries, it is observed that there are wide differences between the Member States, mainly due to national regulatory barriers.