On Tuesday 19 December, the Agency for the Cooperation of Energy Regulators (ACER) published a report on the obstacles to the integration of distributed energy resources, including demand response, into European energy markets. This report is part of ACER’s series of Market Monitoring Reports (MMR) (see EUROPE 13244/9).
The document highlights challenges such as the lack of an appropriate legal framework, the absence of incentives, restrictions on balancing and congestion management services, limited competition on the retail market and interventions on retail prices.
These factors hinder the active participation of consumers and small players, such as electric vehicles and energy storage solutions, in the electricity market.
In the context of the recent energy crisis and Europe’s carbon neutrality targets for 2050, the flexibility of the electricity system is becoming essential. ACER stresses the importance of consumers and other distributed resources in providing this flexibility.
The report identifies the regulatory and market barriers that have prevented the effective integration of these resources in 2022.
Among its main conclusions, ACER notes the persistence of numerous obstacles, such as difficulties in accessing markets, inadequate national rules and inappropriate price signals.
To overcome these challenges, ACER proposes nine recommendations, including regulatory changes, the promotion of smart meters, the development of local markets for congestion management and improved access to retail markets for new players.
Finally, ACER is organising a public consultation until 2 February 2024 and a webinar on 19 January to discuss the priority strategies. These initiatives aim to engage stakeholders in developing effective strategies to facilitate Europe’s energy transition.
To see the report, go to https://aeur.eu/f/a84 (Original version in French by Nithya Paquiry)