Task 8 – Demand-Side Bidding in a Competitive Electricity Market

Synopsis

Task 8 evaluated and promoted Demand Side Bidding (DSB) as a means of improving the efficiency of the operation of the electricity supply chain. The characteristics, strengths and weaknesses of existing DSB schemes and creating guidelines for the development and enhancement of new schemes was fulfilled.

>DSB is a mechanism that enables the demand side of the electricity market to participate in energy trading. More specifically, DSB allows electricity consumers to offer a specific reduction in demand, at a given time, in return for a specified income. DSB can improve the efficiency of the electricity supply chain by increasing competition in the wholesale energy market and by acting as an alternative to conventional generation. For example, DSB can be used to balance electricity supply and demand and also maintain the quality and security of supply. In addition, DSB could have important environmental and energy efficiency benefits in some situations when it is used as an alternative to conventional generation.


Achieved Results

The results and findings of Task 8 were used to produce the report, A Practical Guide to DSB. The Guide is divided into two sections. The first provides background information about the concept of DSB and why it is important in the operation of competitive electricity markets. This includes a number of important definitions and a discussion of the drivers for DSB. The second section presents a step-by-step guide to the implementation of DSB, covering such issues as: understanding the needs of the DSB buyer; the suitability of consumers to meet these needs; the control, monitoring and communication technologies required; and how to make a business case for each participant. Each step is illustrated by worked examples. Further examples are included at the end of the Guide to provide a wide coverage of DSB applications for both Network Stability and Planned Balancing.

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Publications

Task 8: – A Practical Guide to Demand-Side Bidding
Task 8: – Market participants’ views towards and experiences with Demand Side Bidding
Task 8: – Demand Side Bidding Brochure

Task 8 Flyer

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Participation

Finland, Greece, Netherlands, Norway, Spain, Sweden and the United Kingdom

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Contacts

Operating Agent Linda Hull, EA Technology, United Kingdom

Experts
Seppo Kärkkäinen, Finland
Greece
Jan Griffioen, Netherlands
Bjørn Grinden, Norway
Carmen Rodriguez-Villagarcia, Spain
Margareta Bergström; Sweden
Mark Bailey, United Kingdom

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Links

ETSO
System Operator: European Transmission System Operators
Fingrid Oyj
System Operator: Finland
NGC
System Operator: England and Wales
NORDEL
System Operator: Nordic Transmission System Operators
Red Electrica de Espana
System Operator: Spain
SONI
System Operator: Northern Ireland
Statnett
System Operator: Norway
Svenska Kraftnat
System Operator: Sweden
TenneT
System Operator: Netherlands
UCTE
System Operator: The Union for the Co-ordination of Transmission of Electricity
UKTSOA
System Operator: The United Kingdom TSO Association [No Site]
CEER
Energy Regulator: Council of European Energy Regulators
CNE
Energy Regulator: Spain
Dte
Energy Regulator: Netherlands
Energy Market Authority
Energy Regulator: Finland
NVE
Energy Regulator: Norway
Ofgem
Energy Regulator: Great Britain
Ofreg
Energy Regulator: Northern Ireland
Swedish Energy Agency
Energy Regulator: Sweden

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