Supply-side solutions to grid stability are few in number, and expensive. More baseload generation, electricity networks, capacity markets that pay power plants all year round to be available for dispatch during a few peak hours. Demand-side solutions are usually smaller, and multitudinous: building fabric improvements, equipment upgrades, customer behaviour interventions, and more. So, for grid stability, the principle of “Efficiency First” – already embedded in EU Electricity Regulations – must be used to drive forward and expand the demand-side sector, say Filippos Anagnostopoulos at the IEECP and Samuel Thomas at RAP. They run through the issues, and make particular reference to innovative pay-for-performance efficiency programmes in the U.S., which they want to see in the EU. The authors warn efficiency solutions must be ramped up before they are crowded out by long-term investment in expensive and unnecessary supply-side measures, subsidised by consumers and taxpayers.
Energy Post 28th Jan 2021 read more »