21.12.2022

ACER submitted the framework guideline on demand response to the European Commission – first step towards binding EU rules

Last updated on 03.02.2023
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ACER submitted the framework guideline on demand response to the European Commission – first step towards binding EU rules

What is it about?

ACER was mandated by the European Commission to draft a framework guideline on demand response.

Many consumers want to actively participate in energy markets. 'Demand response' essentially means a change in electricity consumption as customers (individually or collectively) respond to some market signal such as a change in electricity prices or some financial incentive to increase/decrease/shift the timing of their electricity consumption. In the context of this framework guideline only active participation of demand response in electricity markets is covered.

ACER’s framework guideline sets out the main principles for the development of a binding EU-wide rules on demand response. The new rules aim at facilitating the participation of more demand response including consumers’ electricity demand, storage and distributed generation (e.g. rooftop solar panels, electric vehicles) in the wholesale electricity markets, as well at facilitating the market based procurement of balancing, congestion management and voltage control services needed by grid operators. The following areas are covered:

  • General requirements for market access to be specified at European level to ensure a level playing field for the participation of all the resources in the electricity wholesale markets;
  • Principles for ‘prequalification’ aiming at simplifying the process and removing entry barriers for everyone (such as consumers with solar panels or electric vehicles or small storage facilities such as batteries) in different services to system operators. Prequalification processes allow potential providers (such as generators or consumers) to give proof to the grid operators that they fulfil the requirements for rendering one or more types of services (such as balancing, congestion management and voltage control) necessary to guarantee the secure operation of the system;
  • Principles for the coordination of market-based procurement of congestion management, voltage control and balancing services with other wholesale markets and between (distribution and transmission) system operators ensuring coherence in interaction across different markets and timeframes; and
  • Requirements for market-based procurement of products used for electricity congestion management and voltage control.

ACER thanks stakeholders for their input to the public consultation in summer 2022. See ACER’s Evaluation of the responses received.

ACER submitted the framework guideline to the European Commission on 20 December 2022.

What are the next steps?

Once ACER’s framework guideline is cleared by the European Commission, ENTSO-E and the EU DSO Entity will be asked by the Commission to draft (within 12 months) the proposal for the new binding EU rules. A drafting committee including ACER and some stakeholders, to support them in this work will be established. ACER will consult and review the proposed new EU rules before submitting them to the European Commission.

Access the Framework Guideline on Demand Response.