scholarly journals The Clean Energy Package and Demand Response: Setting Correct Incentives

Energies ◽  
2020 ◽  
Vol 13 (21) ◽  
pp. 5672
Author(s):  
Bert Willems ◽  
Juulia Zhou
Keyword(s):  
Demand Response ◽  
Distribution System ◽  
Business Models ◽  
Clean Energy ◽  
Market Forces ◽  
Horizontal Merger ◽  
Market Participants ◽  
The Eu ◽  
Energy Package ◽  
Regulatory Challenges

We describe how recent EU regulation affects demand response (DR) and highlight some of the remaining regulatory challenges from a legal and economic viewpoint. With the Clean Energy Package (CEP), the EU has opted for a fully market-based, consumer-centered approach for DR. The development of business models and products is left to a large extent to market forces. However, to enable the efficient development of those DR markets, network regulation has to adapt. (1) Network tariffs have to become more cost-reflective to provide correct incentives to market participants. The capacity tariffs have to increase, net-metering should be abolished, and optional tariff components for providing flexibility may need to be considered. (2) The regulation for distribution system operators (DSOs) may need to be fine-tuned to reflect their new roles. We present three scenarios: (a) a horizontal merger of unbundled DSOs under incentive regulation, (b) a DSO as a subsidiary of an integrated utility under cost plus regulation, (c) a transfer of some activities from DSO to TSO.

scholarly journals Planning of a Smart Local Energy Community: The Case of Berchidda Municipality (Italy)

Energies ◽  
2019 ◽  
Vol 12 (24) ◽  
pp. 4629 ◽  
Author(s):  
Emilio Ghiani ◽  
Andrea Giordano ◽  
Andrea Nieddu ◽  
Luca Rosetti ◽  
Fabrizio Pilo
Keyword(s):  
Demand Response ◽  
Distribution System ◽  
Smart Grids ◽  
Clean Energy ◽  
Automation System ◽  
Local Energy ◽  
Active Involvement ◽  
Home Automation System ◽  
Energy Community ◽  
Strategic Policies

Recent strategic policies and regulations dealing with market liberalization and decarbonization plans, such as the European directives contained in the recent EU Clean Energy for All Europeans Package, are seeking to promote new roles for citizens in the management of the self-produced renewable energy and the development of local energy markets. In this context, this paper aims at presenting the planning actions for the transition of the current passive distribution system of the Municipality of Berchidda (Italy) towards a smart local energy community. This planning study represents the first stage of a development action financed by the Sardinian Region, whose Regional Energetic and Environmental Plan identifies the Municipality of Berchidda as a priority area to focus the experimental actions for innovative smart grids and intelligent energy management. The project, named “Berchidda Energy 4.0”, focuses on increasing the energy efficiency of the community by boosting local renewable generation production and maximizing its self-consumption, also with the support of storage systems, as well as increasing the active involvement of the consumers that will be equipped with a smart home automation system for demand response applications.

scholarly journals Regulating Fintech in the EU: the Case for a Guided Sandbox

2020 ◽  
Vol 11 (3) ◽  
pp. 604-629 ◽  
Author(s):  
Wolf-Georg RINGE ◽  
Christopher RUOF
Keyword(s):  
Business Models ◽  
Financial Regulation ◽  
Legal Framework ◽  
Business Practices ◽  
Eu Member States ◽  
Market Participants ◽  
New Business ◽  
Real Market ◽  
Regulatory Problems ◽  
The Eu

New financial technology holds the promise of innovation and competition, challenging established products and services and frequently improving market processes. However, regulation of these new services faces a double challenge: to keep pace with innovation and facilitate new market entries while at the same time understanding and managing the regulatory risks that are involved.At this stage, the existing EU regulatory framework is of little help: the bulk of the present body of financial regulation stems from a different time, with different regulatory problems in mind. EU regulation is also very slow to change and to adapt. Therefore, this paper proposes a regulatory “sandbox” – an experimentation space – as a step towards a regulatory environment where such new business models can thrive. A sandbox would allow market participants to test fintech services in the real market, with real consumers, but under the close scrutiny of the supervisor. The benefit of such an approach is that it fuels the development of new business practices and reduces the “time to market” cycle of financial innovation, while simultaneously safeguarding consumer protection. At the same time, a sandbox allows for mutual learning in a technical field which is sometimes poorly understood, both for firms and for the regulator. This would help to reduce the prevalent regulatory uncertainty for all market participants.In the particular EU legal framework with various layers of legal instruments, the implementation of such a sandbox is not straightforward. In this paper, we propose a “guided sandbox”, operated by the EU Member States, but with endorsement, support, and monitoring by EU institutions. This innovative approach would be somewhat uncharted territory for the EU, and thereby also contribute to the future development of EU financial market governance as a whole.

scholarly journals Smart Grid Development: Multinational Demo Project Analysis

2016 ◽  
Vol 53 (6) ◽  
pp. 3-11 ◽  
Author(s):  
I. Oleinikova ◽  
A. Mutule ◽  
A. Obushevs ◽  
N. Antoskovs
Keyword(s):  
Best Practices ◽  
Smart Grid ◽  
Demand Response ◽  
Distribution System ◽  
Business Models ◽  
System Level ◽  
System Service ◽  
Project Analysis ◽  
System Operator ◽  
The Baltic

Abstract This paper analyses demand side management (DSM) projects and stakeholders’ experience with the aim to develop, promote and adapt smart grid tehnologies in Latvia. The research aims at identifying possible system service posibilites, including demand response (DR) and determining the appropriate market design for such type of services to be implemented at the Baltic power system level, with the cooperation of distribution system operator (DSO) and transmission system operator (TSO). This paper is prepared as an extract from the global smart grid best practices, smart solutions and business models.

EU energy package may fall short of expectations

2016 ◽  
Keyword(s):  
Environmentally Friendly ◽  
Clean Energy ◽  
Political Capital ◽  
Member States ◽  
Content Type ◽  
Current State ◽  
Energy Union ◽  
Energy Options ◽  
The Eu ◽  
Energy Package

Significance This represents a continuation of its attempts to develop an energy union and promote the development of clean energy options. It aims at helping member states move away from their current state-centric systems to more consumer-focused, competitive and environmentally friendly models. Impacts If fully implemented, the package is expected to lower emissions by 43% on current levels by 2030. Depending on the United Kingdom's energy relationship with the EU after Brexit, it may be affected by the rules after its withdrawal. The United Kingdom's ability to influence the policy will be limited given its declining political capital with other member states.

scholarly journals Demand-Response Optimization in Buildings and Energy Communities, a Case in Value Stacking

Proceedings ◽  
2020 ◽  
Vol 65 (1) ◽  
pp. 7
Author(s):  
George B. Huitema ◽  
Aliene van der Veen ◽  
Vasiliki Georgiadou ◽  
Michele Vavallo ◽  
Moisés Antón García
Keyword(s):  
Demand Response ◽  
Green Energy ◽  
Demand Side ◽  
Energy Services ◽  
Response Optimization ◽  
The Eu ◽  
Energy Package

In this paper, the application of demand-side flexibility to residential users and energy communities is discussed. From the H2020 project HOLISDER, it appears that selected Key Exploitable Results are not commercially interesting on their own as flexibility services but certainly are an add-on by cross-value stacking to regular energy services. For groups of prosumers, such as energy communities, cross-stacking can enlarge the awareness and commitment within the communities and, therefore, play an important role in the uptake of citizen communities as promoted by the EU Green Energy Package.

scholarly journals Formal modelling of the electricity markets: the example of the load reduction of electricity mechanism “NEBEF”

2021 ◽  
Vol 897 (1) ◽  
pp. 012017
Author(s):  
Florian Selot ◽  
Bruno Robisson ◽  
Claire Vaglio-Gaudard ◽  
Javier Gil-Quijano
Keyword(s):  
Demand Response ◽  
Electricity Markets ◽  
Electricity Market ◽  
Third Party ◽  
Formal Approach ◽  
New Parties ◽  
Eu Regulation ◽  
Market Participants ◽  
Final Consumer ◽  
The Eu

Abstract The liberalisation of the electricity market initiated at the beginning of the 21st century has opened it to new parties. To ensure the growth of participants’ number will support the system’s balance, the EU regulation 2019/943 confirms that “all market participants should be financially responsible of the imbalances they cause”. In their respective area, the transmission system operators develops the regulation in compliance with this condition. However, as the regulation takes into account the new realities of the market such as renewables, the interactions between the participants become more complex. One of the risks is that the imbalance of an actor may not be due to its own actions, not complying with the EU regulation then. To analyse this kind of implicit condition, we propose a formal approach to model the exchanges of energy. Using the French regulation as a base, we model the participants and their interactions in the form of symbolic equations using the energy-related terms as variables. In this paper, to illustrate the model we will use to analyse the entire electricity market, we apply it to the NEBEF mechanism only. This mechanism is dedicated to the selling of demand response in France and introduces a third party between the final producer and the final consumer: the demand response operator. We model the mechanism and analyse how the mechanism complies with the balancing responsibility. Our results demonstrate that the mechanism complies with the regulation but there are some limits due to the calculation method of the reference consumption.

scholarly journals The Effect of European Integration on Swiss Energy Policy and Governance

2019 ◽  
Vol 7 (1) ◽  
pp. 6-16 ◽  
Author(s):  
Paul Adrianus Van Baal ◽  
Matthias Finger
Keyword(s):  
Energy Policy ◽  
Clean Energy ◽  
Network Governance ◽  
The European Union ◽  
Consumer Empowerment ◽  
Historical Developments ◽  
Energy Relations ◽  
Governance Processes ◽  
The Eu ◽  
Energy Package

The unique “Swiss way” of association with the European Union (EU) has received increasing attention in light of recent events such as Brexit as it is based on sectoral agreements without an overarching institutional framework. As such, Europeanization of Swiss domestic policy does not follow a straightforward process. We examine the external governance processes that drive the Europeanization of Swiss energy policy. Switzerland and the EU are highly interdependent in energy due to Switzerland’s geographical position but there is a relatively low level of policy alignment, as there is no formal EU-Swiss energy agreement nor has Switzerland autonomously implemented legislation equivalent to the EU energy acquis. The EU has fully liberalized the energy market and is focusing on consumer empowerment and decarbonization through the Clean Energy Package, whereas the Swiss energy sector remains only partially liberalized. Through a series of expert interviews with key stakeholders, we reconstruct the historical developments in Swiss energy policy, focusing on the relationship with, and the influence of the EU. We observe elements of each of the three ideal modes of governance—markets, hierarchies, and networks. The relative importance of these modes of coordination in governing EU-Swiss energy relations has shifted considerably over time. Gradual harmonization of EU energy markets and certain key events have driven Swiss exclusion from EU network governance processes, leading to more hierarchy. We identify the strengths and weaknesses of each mode of governance for EU-Swiss energy relations in their historical setting and discuss the implications for energy policy in Switzerland in the context of the Clean Energy Package and EU external relations in general.

scholarly journals Integrating Plus Energy Buildings and Districts with the EU Energy Community Framework: Regulatory Opportunities, Barriers and Technological Solutions

Buildings ◽  
2021 ◽  
Vol 11 (10) ◽  
pp. 468
Author(s):  
Andreas Tuerk ◽  
Dorian Frieden ◽  
Camilla Neumann ◽  
Konstantinos Latanis ◽  
Anastasios Tsitsanis ◽  
...  
Keyword(s):  
Market Integration ◽  
National Level ◽  
Clean Energy ◽  
Use Cases ◽  
Full Potential ◽  
Economic Optimization ◽  
Eu Member States ◽  
Energy Community ◽  
The Eu ◽  
Energy Package

The aim of this paper is to assess opportunities the Clean Energy Package provides for Plus Energy Buildings (PEBs) and Plus Energy Districts (PEDs) regarding their economic optimization and market integration, possibly leading to new use cases and revenue streams. At the same time, insights into regulatory limitations at the national level in transposing the set of EU Clean Energy Package provisions are shown. The paper illustrates that the concepts of PEBs and PEDs are in principle compatible with the EU energy community concepts, as they relate to technical characteristics while energy communities provide a legal and regulatory framework for the organization and governance of a community, at the same time providing new regulatory space for specific activities and market integration. To realize new use cases, innovative ICT approaches are needed for a range of actors actively involved in creating and operating energy communities as presented in the paper. The paper discusses a range of different options to realize PEBs and PEDs as energy communities based on the H2020 EXCESS project. It concludes, however, that currently the transposition of the Clean Energy Package by the EU Member States is incomplete and limiting and as a consequence, in the short term, the full potential of PEBs and PEDs cannot be exploited.

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