Regulatory barriers for activating flexibility in the Nordic-Baltic electricity market

Claire Bergaentzlé, Klaus Skytte, Emilie Rosenlund Soysal, Luis Rafael Boscán Flores, Ole Jess Olsen

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    Abstract

    The rapid growth of variable renewable energy (VRE) and the expected decrease of conventional generation capacities will generate more flexibility needs in power systems and require flexibility resources to be activated. Flexibility potentials do exist, whether they refer to installed generation, load adjustment or to a greater coupling to other energy sectors.
    In this paper, we identify the framework conditions that influence the provision of VRE-friendly flexibility in the Nordic and Baltic electricity sector, i.e., the market and regulatory settings that act as drivers or barriers to flexibility.
    We find that the most restrictive barriers against flexibility are emitted by public authorities as part of broader policy strategies. Overall, we find that current regulatory and market framework conditions do not hinder flexibility. However, despite that, flexibility remains limited due to a lack of coherent instruments intended to both the demand and supply-side to effectively act flexibly.
    Original languageEnglish
    Title of host publication2017 14th International Conference on the European Energy Market (EEM)
    Number of pages7
    PublisherIEEE
    Publication date2017
    ISBN (Electronic)978-1-5090-5499-2
    DOIs
    Publication statusPublished - 2017
    Event14th International Conference on the European Energy Market - Dresden, Germany
    Duration: 6 Jun 20179 Jun 2017

    Conference

    Conference14th International Conference on the European Energy Market
    CountryGermany
    CityDresden
    Period06/06/201709/06/2017

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