6 Dec 2022: Demand Response in Wholesale Market this Winter

For this European workshop on Demand Response from Brussels, in the critical context of this winter and next, we received 130 registrations of participants from 18 countries in Europe and beyond, and discussed:

1°) Policy developments from the Clean Energy Package and its partial implementation so far, with more to come as per emergency actions this winter. Catharina Sikow-Magny clearly urged Member States to ensure a timely and correct implementation of the CEP regarding DR.

2°) Practical experiences to get consumers on board at scale:
– Residential consumers with implication from a local authority: Agglomération de Cergy-Pontoise, partnering with Voltalis
– Industrial consumers engaging with Sympower.

Minister Claude Turmes outlined the key steps taken by the EU to allow DR contribute to the energy transition, and now to mitigate the current crisis. He highlighted the role of aggregators and the excessive claim from incumbents to be compensated for demand reduction while this provides them benefits by reducing market prices. He mentioned the actions taken in Luxembourg in this field.

Here is the full video recording of the workshop as per the speaking order below, followed by Q&As with Tom Howes (DG ENER, EC). >>>>>

Presentations available are to be found below using the download links on the right for each speaker.

Yves Le Thieis presented the main findings of a second study quantifying the benefits of Demand Response this year (2022-2023).
The executive summary and the full study are available on a specific page, as well as the first study on benefits of DR in 2030.

Joint Research Center

Paolo Bertoldi presented the key takeaways of a report by the JRC on the state of play at the end of 2021 regarding DR participation in wholesale markets among most Member States… with still many steps to be taken.

Jaume Loffredo described consumers’ expectations both in the very short term, and further on with the key role of automation.

Pierre Bivas described the fast track for Member States to allow DR to participate in the wholesale market this winter, with only two straightforward rules regarding DR aggregators, and no other change.

Catharina Sikow-Magny highlighted the key role of DR both in the current crisis and for the energy transition, and urged Member States to implement the provisions on DR from the Clean energy package, in particular so as to meet the demand reduction targets set on 6th Oct. 2022.

The timely and correct transposition of the relevant provisions of the CEP is crucial and urgent. Unfortunately, transposition is lagging behind in the majority of Member States.
This is a big request from my side to all Member States to rapidly implement the provisions that are urgently needed to implement demand response.

Marc Denis described how the local community, with 20,000 homes using electrical heating, managed to have, within months, 2,100 equipped with Voltalis solution to save energy and provide demand response at wholesale level through aggregation.

Simon Bushell drew the key lessons from his experience as an aggregator for industrial consumers, and the next step to actually allow full participation of DR in all electricity markets.

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