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The Role of Regulators in Promoting the Procurement of Flexibility Services within the Electricity Distribution System: A Survey of Seven Leading Countries

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  • Karim L. Anaya

    (Energy Policy Research Group, Cambridge Judge Business School, Cambridge CB2 1AG, UK)

  • Michael G. Pollitt

    (Energy Policy Research Group, Cambridge Judge Business School, Cambridge CB2 1AG, UK)

Abstract

This paper identifies and explores regulatory issues that may have an impact on the use of flexibility services by distribution utilities to solve grid constraints. This can be done by flexible distributed energy resources which can be instructed, for instance, to reduce export generating capacity or increasing consumption. We want to identify how regulation can better support the development of the future distribution utility in its role as neutral market facilitator, enabling more competition in local flexibility markets and optimal use of resources. A set of questionnaires were designed to capture the insights around important aspects of the regulation of flexibility markets (utilities’ network incentives, network tariff structure, market design for flexibility markets, etc.). These were sent to distribution utilities, energy regulators, energy marketplaces, energy associations and relevant experts from seven jurisdictions. The responses suggest a collective interest in the procurement of flexibility services by distribution utilities from distributed energy resources. New regulations, the adaptation of current rules and recent consultations reflect this. However, the amount of progress with and preferences for key regulatory changes differ across jurisdictions.

Suggested Citation

  • Karim L. Anaya & Michael G. Pollitt, 2021. "The Role of Regulators in Promoting the Procurement of Flexibility Services within the Electricity Distribution System: A Survey of Seven Leading Countries," Energies, MDPI, vol. 14(14), pages 1-25, July.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:14:p:4073-:d:589258
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    References listed on IDEAS

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    1. Karim L. Anaya & Michael G. Pollitt, 2021. "How to Procure Flexibility Services within the Electricity Distribution System: Lessons from an International Review of Innovation Projects," Energies, MDPI, vol. 14(15), pages 1-26, July.
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    Cited by:

    1. Karim L. Anaya & Michael G. Pollitt, 2021. "How to Procure Flexibility Services within the Electricity Distribution System: Lessons from an International Review of Innovation Projects," Energies, MDPI, vol. 14(15), pages 1-26, July.
    2. Lynne L. Kiesling & Leonardo Meeus & Michael G. Pollitt, 2021. "Special Issue “Innovation, Policy, and Regulation in Electricity Markets”," Energies, MDPI, vol. 14(19), pages 1-4, September.
    3. Diego Rodríguez Rodríguez, 2023. "Sobre la revisión del PNIEC," Policy Papers 2023-06, FEDEA.
    4. Karim L. Anaya & Monica Giulietti & Michael G. Pollitt, 2022. "Where next for the electricity distribution system operator? Evidence from a survey of European DSOs and National Regulatory Authorities," Competition and Regulation in Network Industries, , vol. 23(4), pages 245-269, December.
    5. Ádám Sleisz & Dániel Divényi & Beáta Polgári & Péter Sőrés & Dávid Raisz, 2022. "A Novel Cost Allocation Mechanism for Local Flexibility in the Power System with Partial Disintermediation," Energies, MDPI, vol. 15(22), pages 1-18, November.

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