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DNV GL report criticizes EU demand response regulations

In a study commissioned by the EURELECTRIC industry association, DNV GL has found that a financial model proposed by the European Commission could limit the effectiveness of demand response as a way to ensure a reliable and economically stable energy system.

The EU directive aims to stimulate the use of demand response in all member states, by bringing a new player; an aggregator, into the electricity value chain. An aggregator is responsible for combining consumer loads and generated electricity, to be traded on the electricity market.

The criticisms, found in DNV GL’s report Demand Response Activation by Independent Aggregators as Proposed in the Draft Electricity Directive, center on the fact the draft currently prohibits financial compensation to stakeholders who are left at a disadvantage by the independent actions of an aggregator.

The report recommends that EU Member States be allowed to make their own decision regarding demand response compensation, based on their individual market circumstances, and recommends several possible financial models, which DNV GL says would have significant benefits over the current ‘no compensation only’ proposal.

More here.


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