Market-based approaches to demand side flexibility have started to emerge across Europe in recent years. This whitepaper, based on in-depth research carried out by Delta-EE, covers six points:
- Market-based approaches to demand side flexibility sit in a hierarchy of smart tariffs, markets, and direct control.
- DSO flexibility markets are at an early stage – approaching business as usual in two countries, with pilot projects and trials in several others.
- There is a danger of DSOs focusing narrowly on their own needs and not considering whole system flexibility
- Several platforms are being used by DSOs to help them procure flexibility. We identify four defining criteria which can be used to categorise platforms.
- We identify six trends where the market is – and needs to – move towards.
- Investing in developing market liquidity is critical to success