Enabling Decentralised Flexibility in the Digital Age
Decarbonisation, decentralisation and digitalisation are three major pillars reshaping electricity systems; enabling consumers to monetise their flexible load and optimise their consumption, without necessarily sacrificing their comfort; with smart infrastructures, assisting utilities to improve their operational efficiency; and promoting active grid management by distribution system operators.
However, existing market design and regulation has developed in the context of centralised production and distribution of energy, where demand responses are limited to large-scale electricity consumer and distribution grids are passively balanced. To truly enable decentralised flexibility from small-scale consumer to prosumer and to allow digital technologies to contribute to energy transformation, changes in market design and regulation need to be made. In this paper we aim to identify the barriers that constrain development of decentralised flexibility and address the changes necessary in market design and regulation.