Adjustable consumption participating in the electricity markets

Abstract

We consider a player managing a portfolio of flexible demand-side devices and examine the requirements for such a player to become an active player in the Nordic electricity system. In particular, we examine the regulatory requirements that must be satisfied to perform spot price optimization and to participate in the regulating power market. To conceptualize these requirements, we estimate the costs per consumer for honoring the given requirements, both under the current regulations but also under the planned future regulations. Finally, we consider a specific case study where domestic appliances are aggregated and utilized for spot price optimization and to participate in the regulating power market. In this case study we examine in detail the implications of the given regulatory requirements for market participation in the Nordic system and compare this with estimates of the revenue that can be generated via market participation. The case study shows that the profit in the current system is very limited but that planned regulatory changes will make market participation significantly more attractive.