The energy transition is taking place in Europe, as the need to balance between more intermittent large-scale renewable energy supply and distributed energy resources becomes increasingly crucial for a clean and reliable electric grid. Based on energy policy framework published by European Commission in November 2016, the European Union’s (EU) Clean energy for all Europeans package consists of eight legislative acts. After political agreement by the Council of Ministers of the EU and the European Parliament in 2018 and early 2019, the Council formally adopted all legislative pieces of the Clean energy for Europeans package that reform the EU electricity market in May 2019. EU member states have up to two years to transpose these legislative elements into national laws.
A focal point of the package is the reinforcement of customers’ rights, including ensuring customers’ capability to fully participating in the electricity market on equal footing with other market participants, while empowering them to manage energy consumption. This objective requires each EU member state to examine how customer sited distributed energy resources can be optimized for grid flexibility. These resources include distributed generation, battery energy storage, electric heating and cooling systems, electric vehicle charging, etc. Accordingly, this Capstone project focuses on demand response and battery energy storage. In the package, demand response is defined as “the change of electricity load by final customers from their normal or current consumption patterns in response to market signals, including in response to time-variable electricity prices or incentive payments, or in response to the acceptance of the final customer’s bid to sell demand reduction or increase at a price in an organized market.”
The Capstone team will research current market designs in select European countries that allow the participation of demand response and/or battery energy storage, as well as how the package impacts each country’s regulations concerning those resources’ market participation. Focusing on five European countries (France, Germany, Italy, Spain and the United Kingdom), the team will produce analyses of current market rules; ongoing national legislative, regulatory and policy initiatives, innovative technologies; and stakeholder roles.