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A coalition of 13 European business associations and NGOs has warned that the EU risks higher costs, wasted renewables and blackout risks unless member states urgently activate demand side flexibility.
The warning in the ‘Flexible Demand Accelerator Pledge’ released at SmartEN’s Flexcon event in Brussels this week points to an expected doubling in system flexibility needs in Europe’s increasingly digitalised and clean electricity system by 2030.
Highlighting the development of 70 legislative provisions to foster demand side flexibility in recent years, the signatories call for the establishment in member states of national tripartite dialogues comprised of ministries and national regulatory authorities, TSOs and DSOs and market participants to urgently activate flexibility from buildings, enterprises, industries and vehicles.
They also would serve to allow regular transparent interactions among all the relevant parties.
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“The needed increase in electrification rate must be accompanied by a parallel activation of flexible demand from electrified consumers,” said Michael Villa, Executive Director of smartEn.
“It is fundamental to ensure the cost-effective competitive advantage of the clean energy transition.”
While the legislative framework developed in the EU is considered fit for purpose, there are barriers to the development of innovative services, such as the set up and operation of local energy initiatives, ranging from renewable energy communities to energy sharing schemes.
Other issues suggested for the tripartite dialogues are to support interoperable access and exchange of essential energy data in coordination with relevant stakeholders through a common European data space and to ensure the adequate consideration of demand side flexibility in network development plans of system operators and in national system flexibility needs assessments
Indicative national objectives for non-fossil flexibility, including the contribution of decentralised energy storage facilities and demand response, also should be set in the national energy and climate plans to support the increasing system flexibility needs.
The basis for the pledge is the forthcoming electrification action plan, in which an EU flexibility charter should be prescribed.
The pledge also urges the European Commission and ACER to monitor and support the tripartite dialogues and to report annually on progress in the implementation of the legislative provisions on flexible demand.
