Market Mechanisms and a Regulatory Framework as an Incentive System to Increase the Flexibility of Power Consumption

Abstract

The decentralization and fluctuating power infeed of renewable energy systems require new market models for the integration of controllable loads, for the optimized utilization of power grid assets and for the coupling of the electricity sector with other sectors, e.g. the transport sector. This matter concerns several fields of research. Future market models must take into account the technical and economic framework conditions of the power grid, of power plants and electricity consumers as well as the regulatory framework. In this paper basic specifications for future market mechanisms and the regulatory framework are proposed. These specifications enable an increased flexibility of the power consumption, especially for controllable loads