Expert Group on peak-shaving products
Scope of the Expert Group
The main focus of the Expert Group was to advise ACER on how developing peak-shaving products might affect the EU electricity market under normal market conditions. Experts explored the products’ feasibility, main benefits and potential drawbacks. They advised ACER in assessing whether these products could be introduced without disrupting the functioning of electricity markets or redirecting demand response services towards peak-shaving products.
The group operated from winter to summer 2025. The work was conducted through online meetings, with no remuneration for travel or time commitments.
The Expert Group was composed of the following members:
- Hamid Aghaie
- Farhad Billimoria
- Hanae Chauvaud de Rochefort
- Daniel Davi Arderius
- Vigdis Holta
- Paolo Mastropietro
- Ewa Mataczynska
- Morten Pindstrup
- Carlo Schmitt
- Anton Tijdink
- Andreas Tirez
- Sandra Torraz Ortiz
- Philippe Vassilopoulos
What are peak-shaving products?
Peak-shaving products are market-based tools that enable market participants to reduce their electricity consumption during peak demand periods in exchange for compensation.
Under the Electricity Market Design (EMD) Regulation, the Council can declare a regional or EU-wide electricity crisis if wholesale prices become excessively high. In such cases, Member States can direct system operators to use peak-shaving products to reduce power demand, helping to stabilise the grid and lower prices.
What are ACER’s conclusions?
ACER's assessment shows that the drawbacks of introducing peak-shaving products in the EU electricity market under normal conditions outweigh the potential benefits. Therefore, ACER does not recommend amending the existing legal framework to allow their use outside of electricity price crisis situations. Key concerns identified include:
- reduced overall socio-economic benefits;
- distorted cross-border competition; and
- weakened investment incentives for market-based demand response and flexibility.
In its assessment, ACER also provides recommendations to support Members States in implementing peak-shaving products during electricity price crises. These recommendations aim to enhance the products’ effectiveness and minimise any unintended consequences.
