There is growing consensus among policy makers and market participants that Demand Response is a critical requirement for achieving a low carbon, efficient electricity market at a reasonable cost. This is reflected strongly within the European Network Codes, the Energy Efficiency Directive and the European Commission’s Energy Union Communication.
However in order for Demand Response to become a true and viable resource, a resource which has a measurable positive benefit on the system, it must gain sufficient market momentum and volume. This can only be achieved by introducing players into the market for whom demand-side services form the core of their business model, such as independent aggregators, as well as enabling the traditional players, such as retailers. One without the other will not be sufficient. Therefore, just as in Australia and the USA, – Europe will need to clarify the role of independent Demand Response providers – in order to motivate real, measurable change through market competition.
This paper provides a high-level clarification of the standardised processes required for smooth market function between the independent aggregator and the balance responsible party (BRP). It also discusses the complementary roles of implicit and Explicit Demand Response. This is written with the view to enable independent aggregation in order to foster competition between service providers and the growth of Demand Response in Europe.
