4.5 Article

Opportunities and challenges for small-scale flexibility in European electricity markets

Journal

UTILITIES POLICY
Volume 80, Issue -, Pages -

Publisher

ELSEVIER SCI LTD
DOI: 10.1016/j.jup.2022.101477

Keywords

Ancillary services; Balancing markets; Balancing service providers; Frequency containment reserves; Small-scale balancing providers

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The increase of renewables and the plan to shut down coal-fired power plants in Europe will change power system operation rules. Small unit aggregators are expected to provide flexibility and balancing services in several European countries. This paper compares European market rules for small-scale flexibility, specifically focusing on the prequalification process for Balancing Service Providers to participate in Frequency Containment Reserve Services, and the needs of small-scale flexibility and balancing providers. Switzerland appears to have fewer entry barriers and more possibilities for case-to-case work, followed by Belgium and Germany. Portugal and Spain are developing their ancillary service markets and are expected to allow small-scale balancing providers to participate soon.
The increase of renewables in the electricity mix in Europe in the last years and the plans to shut down coal-fired power plants will change the power system operation rules. Expectations are that small unit aggregators can soon provide flexibility and balancing services in several European countries. This paper aims to perform a qualitative comparison of European market rules for small-scale-scale flexibility. The work focused more specifically on the prequalification process that the Balancing Service Providers should develop to participate in Frequency Containment Reserve Services and the specific needs of the small-scale flexibility and balancing providers. Five countries were chosen for the analysis: Switzerland, Belgium, Germany, Portugal, and Spain. Of the five countries compared, the one that appears to have fewer entry barriers and shows greater possibilities of working on a case-to-case basis is Switzerland, followed by Belgium and Germany. Portugal and Spain are developing their ancillary service markets and should soon allow the participation of small-scale balancing providers in ancillary services.

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