Energy Policy Group

ESMW co-sponsoring Electricity Market Reform workshop

The Energy Security in a Multipolar World (ESMW) research cluster is co-sponsoring the upcoming Expert Stakeholder Workshop ‘Expanding the Demand-Side: Security, affordability and choice in electricity market reform’ with the Combined Heat and Power Association (CHPA), to be held in London on March 3rd 2011.

The Electricity Market Reform consultation has set in motion what should be the most significant reform in the UK energy market since the early 1990s, and in looking to meet the challenges of building a decarbonised energy system the Government has not shied away from radical proposals. Amongst these is a commitment to expand the role of the demand-side of the electricity market, creating the opportunity for energy efficiency, load management, distributed generation and smart systems to compete in delivering a secure energy system at the lowest cost for consumers.

An expanded role for the demand-side – including distributed generation and active management of distribution networks – is not a new concept in electricity markets, but it remains a long way from fulfilling its potential in the UK. The D3 workshop provides a platform for stakeholders who are active in the sector to help shape the agenda of market reform, through interaction with Government, regulators, network operators and other experts who already active in the sector.

This one day conference will explore the EMR consultation proposals with reference to the range of demand–side solutions on offer – demand reduction, demand management and distributed generation – and the capabilities of our electricity networks to mobilise them. Guest speakers from the US will share their experience as designers, analysts and regulators of the New England capacity markets, alongside industry participants and experts from the UK. The programme will include both plenary and interactive workshop sessions.

Areas of focus will include:

  • Creating effective market mechanisms to access the value of demand-side and distributed generation participation in capacity and ancillary services markets
  • Establishing the proper market conditions for competitive new market entry, including liquidity and transparency in electricity markets
  • Elimination of barriers to entry, including costs of market participation, regulatory burden and management of imbalance risk
  • Putting in place the systems, infrastructure and incentives to leverage the benefits of demand-side participation, including active network management and ‘smart’ systems.