Page 60 - European Energy Innovation - Winter 2015 publication
P. 60
Winter 2015 European Energy Innovation


Market-based energy-transition through

By Michael Mieszczanski (pictured), EU Affairs Advisor, European Network of Transmission System Operators
for Electricity (ENTSO-E )

(b lectricity is essential VLJQLƓFDQWLQFUHDVHVLQVHOI could suffer greatly. Fortunately,
to our economy and innovation in information and
modern way of life. It FRQVXPSWLRQHOHFWULƓFDWLRQRI communication technology
keeps society functioning heating/cooling and transport (ICT) is providing tools, which
and our economies operating empower customers to make
and growing. The power system – DVZHOODVODUJHVFDOHUROORXWRI
delivering electricity whenever we smart meters in some countries. WKHLURZQFKRLFHRQKRZŴH[LEOH
need it – is thus one of the core New stakeholders and market they are with their electricity
infrastructure of any society. In players get on board and develop demand. Large industrial and
Europe notably, the power system a wide range of opportunities commercial customers can
is in the midst of transformative for customers, who have to be continuously manage their
change. By 2030 the share of present in all markets. In other consumption and also their
renewable energy sources (RES) words, the power system is going system services. Alternatively, they
will grow beyond 45% of the through a paradigm shift. can set the parameters and leave
EU’s total annual demand – up
from today’s 30%. Most of these All this increases system WKHGD\WRGD\PDQDJHPHQWWRD
are volatile (wind and solar operators’ unique position of service provider or their electricity
photovoltaic (PV)); they are responsibility towards society to supplier. Through these choices
decentralised, connected to the ensure the reliability of the power and parameters, customers are
power system at distribution level system. Transmission system managing their demand much
(especially solar PV) or further operators (TSOs) respond to this more actively than in the past.
away from consumption centres
(especially true for onshore and WKURXJKHQKDQFHGFRRSHUDWLRQ Among the most important
offshore wind). We also observe obstacles to consumer
ZLWKLQDQGEH\RQG(1762( participation in many countries, is
improving planning and the the lack of enabling ‘hardware’:
operation regionally and at smart meters, which are needed
to deliver accurate information
SDQ(XURSHDQOHYHO+RZHYHUDV on cost and consumption as the
the physical reality of the system starting point for active customer
evolves, the electricity market participation. When the hardware
design also needs adjustment to is there, consumer billing needs
incentivise market behaviour in to shift from static consumption
line with the physical needs of
the power system. On the latter SURƓOHVWRDFWXDOWLPHVWDPSHG
aspect, the imperative for TSOs consumption and billing.
across Europe is to reconcile
markets with the 2020 and 2030 Another precondition for
sustainability agendas and to customer participation in the
make the best use of innovation, market is the incentive to do
putting empowered customers so. The increasing proportion



reduces the relative savings for
3$57,&,3$7(,17+( households from decreasing
wholesale prices. Whenever
(/(&75,&,7<0$5.(76 possible, these costs must be
To keep the system in balance, reduced or transformed into more
demand must become more dynamic market components.

ŴH[LEOHLHFXVWRPHUVPXVWEH To link up wholesale and
enabled to respond to market retail prices, TSOs and DSOs

was imposed on the customer,
quality of life and industrial
and commercial productivity
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