Energy flexibility in Europe
Demand response (DR) is rapidly becoming a reality in Europe, with a significant shift needed to enable the energy transition and better integrate renewables. DR activation is essential on a daily basis, triggered by market signals, with potential for massive benefits for consumers, power systems, and the planet. By 2030, substantial downward flexible power and demand-side flexibility (DSF) are expected in Europe, bringing reduced energy sourcing costs and price decreases, ultimately leading to billions in annual market-wide benefits.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Energy flexibility in Europe Demand Response from homes and buildings now in GWs and TWhs Ninth Roundtable, Prague, 23rdJan. 25
DR is already a reality, for all consumers 2 GW 1.2 GWp Under construction 8 1.5m+ 250k Sites 800 MWp VPP European countries DER connected >200b Data entries collected since inception 10b 200m 13 Daily activation Individual shedding orders since 2010 Project finance in past year Patents Appliance Generation All types of Distributed Energy Resources HVAC Boilers Heat pumps EV Batteries Solar On-site Gen V2G 2 2
Electricity systems now need DR at scale A rapid shift is required to enable the energy transition Ensure better integration of renewables Accompany electrification of usages, e.g., EVs, HPs From 10s MW here & there, to 1-200 GW across Europe Extend from large industrial consumers to (sm)all consumers Involve all flexible appliances in buildings 3
DR activation needed daily Provide automation & operation triggered by market signals Frequent use: from rare (emergencies) to daily activation From availability of 10s MW to delivery of 100s GWh/per day Via wholesale market Appropriate for such volumes (also SOs services, plenty of resources, hence prices will drop) Wholesale market price is a relevant signal By 2030, SmartEn assessed 130 GW downward flexible power and ~340 TWh downward DSF in Europe alone1 4 Source: 1 - SmartEn 2030 Demand-Side Flexibility Quantification of benefits in the EU (2022)
DR benefits are massive Consumers, power systems, the planet, DR is a win win win (2030) First step 30 GW energy sourcing costs to be reduced by about 290 million in Europe, benefitting suppliers2 DR activation to decrease the price by circa 40/MWh in France2 for the highest peak price (quoted by Kadri Simson) Energy affordability: DR full potential ~ 300 billion in annual market-wide benefits for European consumers ~ 71 billion per year of direct savings on electric consumption1 Sources: 1 - SmartEn 2030 Demand-Side Flexibility Quantification of benefits in the EU (2022) 2 - Compass Lexecon for DR4EU 5
DR benefits are massive Consumers, power systems, the planet, DR is a win win win Security: Improved power supply networks - ~ 11-29 billion saved annually on power grid investment at EU level Sustainability: Contribute to grid decarbonization - 61% renewables curtailment emission 37.5 million tons of GHG saved annually 6 Source SmartEn 2030 Demand-Side Flexibility Quantification of benefits in the EU (2022)
Lets put customers at the centre Energy transition means using less energy, and time is of essence Engaging large numbers of consumers to reach GWs and TWhs Enroll and retain with an attractive value proposition: no burden, no capex, no exposure to price risk Affordable DSR automation and operation to (sm)all consumer THE enabler 7
DSR and Energy Efficiency go hand in hand Access for DR to wholesale market: a best practice to enable scale-up DR in all electricity markets as an alternative to generation, no discrimination (CEP, 2019) Deliver benefits by reducing prices in all markets Market-based revenues for DR to trigger large-scale investment => ensure automation & daily operation of aggregator DSR Energy efficiency supported by DSR automation 8
Market design matters Access to wholesale market a best practice to enable scale-up Total DR volumes (wholesale market and balancing) 600 DR in wholesale market ensures benefit for all stakeholders, i.e. suppliers, consumers, BRPs 537 500 400 GWh 300 200 176 France: relying on state aids, benefits? 100 86 61 46 31 23 27 13 16 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Effacements activ s sur le m canisme d'ajustement (en GWh) Effacements r alis s sur NEBEF (en GWh) The UK is leading the show for a market-based approach Live on 7th Nov. 24 9
In conclusion Renewables and electrification Demand-side response on a large scale is next step to net zero All consumers need to be involved To make decision simple for them, aggregators to provide for automation and daily operation in the market ENERGY EFFICIENCY & DSR to go hand in hand 10
Thank you info@voltalis.com
