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Demand-side participation in Resource Adequacy Mechanisms: 14 Member States under scrutiny

Jan 25, 2022

A deep country-by-country analysis of the conditions for decentralised energy resources (DERs) to participate in different Resource Adequacy Mechanisms (RAMs) was presented today by smartEn, the European business association integrating the consumer-driven solutions of the clean energy transition.

The smartEn 2021 Map on Resource Adequacy Mechanisms analyses capacity mechanisms, interruptible loads and reliability options. The objective is to provide an overview of which countries are more advanced in facilitating the participation of DERs in their security of supply measures, and, in this way, be able to share best practices for other European countries.

The main takeaways of this efforts are the followings:

  • Participation of DERs is very limited and more polluting traditional generation prevails;
  • Product design and prequalification requirements are rarely technology inclusive and often create implicit barriers to DER participation;
  • A market-based approach to resource adequacy is uncommon;
  • Limits to small DERs and aggregation are still a major barrier.

Today the report was presented by the lead author Andrés Pinto-Bello Gómez in a smartEn webinar.

In his remarks, Michael Villa, smartEn Executive Director, stressed: “No ideal RAM is in place and too many barriers to demand-side resources still exist across Europe. Both the EU Electricity Regulation in 2019 and the new 2021 State aid Guidelines for Security of Supply set clear requirements for technology inclusiveness, but details matter and the Commission should carefully ensure all RAMs are fully compliant with the EU frameworks. This is a system efficiency priority, otherwise the costs of decarbonisation will increase”.

Annegret Groebel, President of the Council of European Energy Regulators (CEER), who signed the Foreword of the publication, and Matt Wieckowski, Case Handler at the DG Competition of the European Commission, shared their opinions during the webinar.

Alicia Carrasco, Executive Director of Entra Agregación y Flexibilidad, and Paul Troughton, Senior Director of Regulatory Affairs at EnelX also joined the webinar to contribute the industry view and highlighted barriers in the Spanish, British, Irish and Italian contexts.

In recent years, the annual smartEn Map has become a central reference publication providing market intelligence for digital and decentralised energy resources in the European electricity sector. Each year it targets a specific topic and provides deep analysis in an approachable format, with clarifying visuals.

You can find the report here and you can revisit the event through this link.

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