NEWS

Open Letter to Kadri Simson, Ditte Juul-Jørgensen, and Christian Zinglersen l Requirements for an impactful Network Code for Demand Response

Sep 18, 2023

smartEn – Smart Energy Europe, the European business organisation bringing together over 90 companies offering solutions to enable all consumers to become active and flexible, welcomes efforts made in drafting the network code for demand response (DR). We appreciate the decision by ENTSO-E and the EU DSO Entity to share with the drafting committee a first draft before launching the formal public consultation, even though the timeline for comments and amendments is very tight.

The network code offers the opportunity to shape a truly technology-inclusive framework for the market-based procurement of DR by system operators. This is an important step to unlock systemwide services provided by demand-response, storage, and other distributed energy resources (DERs).

However, we are deeply concerned that the current draft is not fit for this purpose, and it is not properly aligned with the requirements set by ACER in its Framework Guideline, both for its scope and content. To ensure nothing is left out, the drafting team should provide a clear overview of how and where in the draft network code each paragraph of the Framework Guideline has been incorporated.

More NEWS

  • smartEn together with 6 stakeholder organizations and drafting committee members, welcome the new network code proposed by ENTSO-E and the EU DSO Entity. This code is essential for supporting decarbonization and enhancing Europe’s energy security by enabling distributed energy resources (DERs) and demand response. The new code aims to remove the market access barriers, ensuring broad market participation and facilitating market-based procurement of flexibility services. We thank all involved in drafting this proposal and emphasize the need for effective, harmonized, and forward-looking regulations to promote a secure, efficient, and decentralized energy system.

  • Making better use of the grids thanks to the contribution of existing and future connected flexible consumers is an efficient approach to tackle urgently the congestion challenge. The Flexible Demand Management Industry that smartEn represents can empower grid users, i.e. grid connected buildings, industries and electric vehicles, to play an active role in supporting an efficient and smart operation of grids. However, grids must be incentivised to use the flexibility of connected consumers, as already prescribed by EU laws. To support this effort, this paper: Sets out six strategic recommendations for the smart operation of grids which should guide the efficient delivery of the EU Grids Action Plan. Lays the groundwork for a dedicated EU Strategy on Grid Congestion which the new Commission should develop to deliver the European Green Deal by 2030. Such a strategy should foster harmonised approaches to tackle grid congestion issues across the EU, without waiting for lengthy network reinforcement, by harnessing the potential of connected, flexible consumers.

  • The Flexible Demand Management Industry provides solutions to all consumers – citizens, businesses, buildings, electric vehicles (EVs) and industries – to become flexible and be rewarded for playing an active role in the clean energy transition. As such, it needs to be fully recognised as a crucial clean-tech industry in Europe. But as the Flexible Demand Management Industry is very heterogeneous, it is often not easy for it to be identified as a specific industrial base and its significant contribution tends to be overlooked. This is a major gap to fill. This paper intends to inform this effort by answering these 3 questions:  What is the Flexible Demand Management Industry and what are the solutions offered?  Why the Flexible Demand Management Industry matters ?  What is needed in the next EU legislature for the Flexible Demand Management Industry to rightfully become a solid pillar of Europe’s decarbonised economy?

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