28.5.2024

Enabling energy consumers and small players play their role: autumn consultation on demand response

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Enabling energy consumers and small players play their role: autumn consultation on demand response

What is it about?

On 8 May 2024, ACER received electricity system operators’ proposal for an EU-wide network code on demand response. The proposal was drafted by the EU Distribution System Operators Entity (EU DSO Entity) and the European Network of Transmission System Operators (ENTSO-E). Their proposal also includes amendments to the three related electricity network codes: balancing, system operation, and demand connection.

After reviewing and where necessary revising the system operators’ proposal, ACER will consult on its revised draft in autumn 2024 before submitting it to the European Commission by March 2025.

Why is this network code relevant?

The network code on demand response will:

  • Establish harmonised rules to facilitate market access for demand response, including load, storage and distributed generation (aggregated or not).
  • Enable market-based procurement of services by Distribution System Operators (DSOs) and Transmission System operators (TSOs).
  • Be applicable in all EU Member States.

Demand response is key for integrating the growing share of renewable energy and new electricity loads (e.g. resulting from heat pumps and electric vehicles) in a cost-efficient way.

In developing this draft network code, ACER is contributing to a more cost-efficient and clean energy transition by facilitating access to EU wholesale electricity markets for smaller actors, including consumers.

Have your say!

ACER is running a public consultation from 5 September to 31 October 2024 on what will be ACER-revised draft proposal. ACER will run a  webinar during the consultation period, on 1 October 2024.

Background

In June 2022, ACER was mandated by the European Commission to draft a framework guideline on demand response which serves as guidance for the system operators to then draft the EU network code. After engaging stakeholders via a public consultation and a workshop during the summer of 2022, ACER submitted the framework guideline to the European Commission in December 2022. The European Commission cleared ACER’s framework guideline in March 2023, and asked the DSO Entity and ENTSO-E to draft the proposal for the new binding EU rules.

What are the next steps?

ACER will submit the revised network code proposal to the European Commission by March 2025.