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October 2018

DEMAND RESPONSE

The benefits of aggregated demand response: Article 17 of recast Internal Market Directive

Explicit demand response provides an opportunity for customers to participate in wholesale electricity markets through aggregators who bundle consumers’ flexible energy use. However, there are still many barriers in the different EU Member States that could impede the development of aggregation, including the question of supplier compensation. Philip Baker identifies two simple models for ensuring suppliers receive appropriate compensation for the energy they purchase for their customers without running afoul of the recast Internal Market Directive.

   
   

ENERGY EFFICIENCY

Building efficiency is crucial to a fair energy transition 

Energy poverty affects at least 10 percent of households in Germany—almost all of which are tenant households. RAP and the Buildings Performance Institute Europe recommend introducing minimum energy performance standards for rental properties to drive deep retrofits and alleviate the effects of energy poverty. Building renovation is a win-win-win strategy. It improves quality of life, reduces healthcare costs, and protects the climate.

   
   

ENERGY EFFICIENCY

The winning combination of “Efficiency First” and rooftop solar

Consumers who generate electricity from rooftop solar photovoltaics have the choice to use that power or feed it into the grid. Using this clean energy resource to heat one’s home is an attractive option, but one that falls short if the house is draughty. Drawing on international examples, Andreas Jahn demonstrates how the Efficiency First principle can be applied to reduce surcharges and levies on home solar generation and reward building efficiency (in German).

   
   
FURTHER NOTES

POWER MARKETS

Recommendations for capacity market review in Great Britain

The government of Great Britain is conducting a review of the capacity market introduced by the Energy Act 2013. Find out why RAP recommends that the capacity market be viewed as a temporary measure until appropriate energy market conditions are established.

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GLOBAL INSIGHTS

New electricity market rules for China’s Guangdong province

Guangdong’s proposed electricity market rules are a promising step forward that will help China’s southern region move toward a more efficient, lower-emissions, lower-cost, and more reliable power system. RAP’s China team offers observations and recommendations for strengthening the proposed market rules.

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ANNOUNCEMENT

RAP expands Europe team

In September, RAP expanded its Europe team to strengthen our work on e-mobility and assistance to Member States in Central and Eastern Europe. RAP welcomes Dr. Zsuzsanna Pató, an energy and climate policy analyst in Budapest, and Dr. Julia Hildermeier, an e-mobility expert based in Brussels.

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