The European Commission is leading a study to identify barriers to Demand Response (DR) participation in electricity markets and State Aid schemes in the EU27 Member States, to estimate the costs and revenues of DR operators, and to assess the level of participation of DR in State Aid measures. The study is conducted by BIP, Grimaldi Alliance, and MRC Consultants and Transaction Advisers, partners providing an excellent insight into the energy sector.

Demand response offers consumers the opportunity to participate in the operation of electricity markets by reducing or shifting their consumption. DR’s involvement in electricity markets is increasingly important for mitigating high prices and tackling price volatility. It will play a crucial role in ensuring the resilience of the future energy system. In order to improve the efforts to promote competitive, consumer-centered, flexible, and non-discriminatory electricity markets, consistently with EU Directive 944/2019, Member States should remove legal, commercial, financial, and technical barriers hampering the participation of consumers in all electricity markets.

The general goal of the study is to collect qualitative and quantitative analytical inputs for the identification of the obstacles hampering the participation of demand response to electricity markets and State aid support schemes, a wide consultation has just started.