The consumer dimension in new market mechanisms

In a context of growing share of renewable energy sources and reduced electricity consumption, both long term and short term security of supply are under pressure. Gas fired power plants are facing reduced income from the energy market calling into question both the electricity market design and the electricity generation mix Integration of smart consumers (demand response) in the electricity System is a key element to address both questions. Due to market and System complexity, new market participants such as aggregators are contributing to building up and operating flexibility from consumers. Since 2009, Energy Pool has been actively contributing to the opening of new market mechanisms to value demand response. Energy Pool has developed services to support consumers in optimizing their flexibility. While today demand response value lies mainly in the balancing and reserve markets operated by the French transport System operator (RTE), new opportunities will emerge with the capacity market and the possibility to take advantage of the price signal by both increasing and reducing consumption. (authors)