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DR and Aggregators status in CSE Europe

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  • Puskás-Tompos András

    (The Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

Global warming is one of the biggest challenges of our times. This phenomenon is largely due to the emissions coming from the burning of polluting fossil fuels in the process of electricity generation. In 2019 generation of electricity and heat, together with transportation accounted for more than two thirds of total emissions from fuel combustion. In addition, these sectors were mainly responsible for most of the global growth since 2010. According to the EU’s green vision, Member States have to decrease their CO2 emissions by 55% until 2030, compared to levels from 1990 and by 2050 they have to become carbon neutral. In recent years we could observe positive trends in the increase of green energy generation. The only issue is that by phasing out dispatchable polluting generation and adding non-dispatchable generation units to the electricity grids more demand flexibility is needed. Low-cost solutions to generate the mandatory flexibility necessary for system stability and reliability are Demand Response (DR) programs. The implementation of DR programs usually is made via a new market participant and new service provider entitled aggregators. Aggregators’ main role is to manage directly or indirectly end consumers’ electricity consumption flexibility. Electricity consumers can obtain incentives or can pay less for their electricity bills if they agree to shift or curtail their electricity consumption. In order to promote DR programs, as well as to increase the contribution of aggregators, the EU supports these programs through Directives. Energy Efficiency Directive 2012/27/EU encourages implementation of DR in energy markets, while Directive (EU) 2019/944 defines the independent aggregator. Further, to support these programs, a large-scale smart metre rollout is going on in EU countries. The objective of current research is to analyse the implementation level of DR in Central and South East (CSE) Europe, as well as to provide a comparative analysis in regards of smart metres rollout in developed countries versus those under development. In order to test the hypothesis, during the research the author used qualitative analysis methods such as comparative studies, desk research and case studies. The novelty of this research consists in the presentation of DR programs and aggregators development together with current state in CSE Europe.

Suggested Citation

  • Puskás-Tompos András, 2022. "DR and Aggregators status in CSE Europe," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 16(1), pages 1219-1236, August.
    • Handle: RePEc:vrs:poicbe:v:16:y:2022:i:1:p:1219-1236:n:2
    DOI: 10.2478/picbe-2022-0112
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    References listed on IDEAS

    as
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