Regulatory Recommendations for the Deployment of Flexibility

The European Commission’s 2030 policy framework seeks to decarbonise the energy system. This framework encourages the electrification of heat and transport, as well as the connection of more intermittent generation. As these policies take effect, the electricity system will become more complex to plan, control and balance. More flexibility will be needed to ensure that the energy system is able to cope with the future challenges. It will be key to delivering an affordable and climate-friendly energy system.

This SGTF-EG3 report about the deployment of flexibility focuses on four aspects: ‘Flexibility’, ‘Regulatory and Commercial arrangements’, ‘Incentives’ and ‘Recommendations’. The report focuses on flexibility from distributed resources, including demand side participation, and seeks to identify flexibility services, relevant value chains, but also the necessary commercial and market arrangements, while it answers the question on how different actors can be incentivised to provide and use flexibility. Finally, concrete recommendations are provided to the European Commission, to policy makers and stakeholders, for removing regulatory barriers and incentivising the uptake of flexibility from distributed resources.