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Opportunities and challenges for small-scale flexibility in European electricity markets

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  • Pedro, Andressa
  • Krutnik, Mikolaj
  • Yadack, Van Malcolm
  • Pereira, Lucas
  • Morais, Hugo

Abstract

The increase of renewables in the electricity mix in Europe in the last years and the plans to shut down coal-fired power plants will change the power system operation rules. Expectations are that small unit aggregators can soon provide flexibility and balancing services in several European countries. This paper aims to perform a qualitative comparison of European market rules for small-scale-scale flexibility. The work focused more specifically on the prequalification process that the Balancing Service Providers should develop to participate in Frequency Containment Reserve Services and the specific needs of the small-scale flexibility and balancing providers. Five countries were chosen for the analysis: Switzerland, Belgium, Germany, Portugal, and Spain. Of the five countries compared, the one that appears to have fewer entry barriers and shows greater possibilities of working on a case-to-case basis is Switzerland, followed by Belgium and Germany. Portugal and Spain are developing their ancillary service markets and should soon allow the participation of small-scale balancing providers in ancillary services.

Suggested Citation

  • Pedro, Andressa & Krutnik, Mikolaj & Yadack, Van Malcolm & Pereira, Lucas & Morais, Hugo, 2023. "Opportunities and challenges for small-scale flexibility in European electricity markets," Utilities Policy, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:juipol:v:80:y:2023:i:c:s0957178722001412
    DOI: 10.1016/j.jup.2022.101477
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    References listed on IDEAS

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    1. Rancilio, G. & Rossi, A. & Falabretti, D. & Galliani, A. & Merlo, M., 2022. "Ancillary services markets in europe: Evolution and regulatory trade-offs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    2. Konstantinos Oureilidis & Kyriaki-Nefeli Malamaki & Konstantinos Gallos & Achilleas Tsitsimelis & Christos Dikaiakos & Spyros Gkavanoudis & Milos Cvetkovic & Juan Manuel Mauricio & Jose Maria Maza Ort, 2020. "Ancillary Services Market Design in Distribution Networks: Review and Identification of Barriers," Energies, MDPI, vol. 13(4), pages 1-44, February.
    3. Scherer, Marc & Zima, Marek & Andersson, Göran, 2013. "An integrated pan-European ancillary services market for frequency control," Energy Policy, Elsevier, vol. 62(C), pages 292-300.
    4. Sirin, Selahattin Murat & Yilmaz, Berna N., 2021. "The impact of variable renewable energy technologies on electricity markets: An analysis of the Turkish balancing market," Energy Policy, Elsevier, vol. 151(C).
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    Cited by:

    1. Samuli Honkapuro & Jasmin Jaanto & Salla Annala, 2023. "A Systematic Review of European Electricity Market Design Options," Energies, MDPI, vol. 16(9), pages 1-26, April.

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