CEER Response on Regulatory Priorities for Enableing Demand Side Flexibility
18 May 2021
Today, CEER publishes its response to the European Commission ASSET Study on Regulatory Priorities for Enabling Demand Side Flexibility (DSF). Regulators, in general, welcome the ASSET study, published in November 2020, but do still recommend to carefully follow, monitor and evaluate the ongoing processes regarding the utilisation of DSF.
Some of the main conclusions of the response are:
- DSF is an innovative and challenging topic which is expected to be relevant mostly at local level. Yet, flexibility is not an end in itself; it is a tool to operate grids more efficiently and can contribute to managing the ongoing challenges stemming from the integration of renewable generation. Therefore, freedom to test different solutions is necessary, considering existing local contexts. The possibility for EU-wide sandboxes would be helpful to allow testing without complying with all European obligations or rules in place.
- It would be more efficient to await the effects of the national implementation of Article 32 of the Electricity Directive (EU/2019/944) by all Member States before considering an additional Network Code (NC).
- Besides market-based flexibility procurement, other options for flexibility at the Distribution System Operator (DSO) level are rules-based approaches, connection agreements and network tariffs.
As currently assessed, regulators do not see the need to produce a specific NC on this topic now, as the scope is currently unclear. However, regulators offer, of course, full support to the relevant monitoring and design processes set up by the European Commission.
Please find the full response here.