Regulation as an enabler of demand response in electricity markets and power systems. (10th September 2018)

• Record Type: Journal Article
• Authors: Annala, Salla; Lukkarinen, Jani; Primmer, Eeva; Honkapuro, Samuli; Ollikka, Kimmo; Sunila, Kanerva; Ahonen, Tero
• Is Part Of: Journal of cleaner production. Volume 195(2018)
• Page Start: 1139
• Page End: 1148
• Publication Date: 2018-09-10
• Subjects: Demand response -- Environmental impacts of electricity -- Regulatory environment -- Tariff structure; Factory and trade waste -- Management -- Periodicals; Manufactures -- Environmental aspects -- Periodicals; Déchets industriels -- Gestion -- Périodiques; Usines -- Aspect de l'environnement -- Périodiques; 628.5
• DOI: 10.1016/j.jclepro.2018.05.276
• Languages: English
• ISSNs: 0959-6526

Abstract

Abstract: The reduction of environmental impacts of electricity use and the transition to renewable power generation crucially depend on demand response (DR). This article takes the political commitment to DR as a starting point and empirically examines Finnish stakeholders' views on barriers to the utilization of DR and the ways in which these barriers could be overcome. The analysis is based on surveys of Finnish electricity retailers and distribution system operators (DSOs), a survey of a wider range of energy specialists, and a follow-up workshop of the latter survey. According to the participants, the main barriers are related to customer engagement and DR automation. Thus, the proposed solutions focused largely on end-user incentives and obligations as well as technical issues. Especially the latter topic would benefit from regulative measures such as standardization of appliance interfaces, whereas changes in electricity tariff structures may take place either through normative changes by the retailers and DSOs or through regulation. Graphical abstract: Image 1 Highlights: Demand response can reduce the environmental impacts of electricity use. Problems in automating demand response and lack of incentives hamper utilization. Technical standards for data system and appliance interfaces are needed. EU policies focus on removing barriers not on mandating incentives.