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Contenu archivé le 2024-04-30

Non technical aspects of demand side management in European electricity markets

Objectif



A Multi-disciplinary team of experts comprising energy economists and planners, power sector demand side management (DSM) specialists, marketing specialists, and behavioural scientists will examine the barriers and impediments to demand side management in the electricity sector. This consortium will examine Europe's rapidly changing power sector market to define optimal approaches that governments, utilities and policy makers could adopt to promote demand side management, particularly in the domestic sector. This will provide government and utilities with information and guidance on what DSM approaches will work best within Europe's rapidly liberalising electricity sector, and on what benefits can be anticipated from such actions.

DSM is a key element in the European Commission's objectives for reducing emissions and mitigating climate change. As world electricity markets liberalise, and traditional producer-consumer relationships change, it will be important to identify new strategies for promoting and accelerating the uptake of DSM. In particular, the growing power of the consumer in the electricity marketplace is an important new development that has been little studied in Europe as yet. Utilities and governments need to develop a better understanding of how and why consumers respond to demand side initiatives so that they can devise incentives and policies to promote their wider adoption. Furthermore, they need to understand how best new and emerging regulatory agencies in the electricity sector can work with industrial, commercial and domestic consumers to promote DSM more effectively and economically in a climate of increasing consumer power over the marketplace.

The project will provide a clearer understanding of the major factors affecting DSM in Europe, and through a critical examination of consumer reactions, help to identify the options available to governments and utilities to accelerate DSM. Specifically, it will lead to an action plan for governments and utilities, listing the anticipated costs and benefits associated with each action. These costs and benefits will be derived from detailed analysis of previous experience in Austria, the UK and the USA, and will be modelled using a market penetration, cost-benefit model. Costs and benefits will take into account market penetration strategies, costs of intervention, revenues, environmental and economic effects. The aim will be to provide guidance on how governments and utilities can best respond in a rapidly changing power sector marketplace.

The project's outputs will include a better understanding of the barriers, impediments and constraints to DSM in Europe; consolidated information on which DSM measures have been utilised in the UK, Austria and the USA, and their effects; concrete studies of consumer attitudes to past and proposed DSM measures in Austria and the UK: a set of proposals from professional marketing specialists for making DSM more acceptable and attractive to customers in Austria and the UK; a set of proposed DSM measures based upon research, discussions and market surveys; a detailed analysis of which DSM measures should be most effective with consumers, and the anticipated effects of these measures will be in terms of mitigating climate change, reducing emissions, and addressing other issues of concern to governments and utilities; forecasts of effects of the DSM measures proposed by the project on energy demand, and their costs and benefits at micro and macro levels from the perspective of the utilities and government: a range of prioritised DSM measures, with their expected results, and recommendations for a proposed action plan for utilities and governments, with its associated costs and benefits.

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Coordinateur

Energy for Sustainable Development Ltd
Contribution de l’UE
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Adresse
Overmoor Farm Neston
SN13 9TZ Corsham
Royaume-Uni

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