Ancillary services: Between the need for a market and decentral business cases

Abstract

In an energy system where the share of renewable energies is increasing, the shape of Ancillary Service needs to change. Due to the weather dependency of wind and solar power the system has to be able to react in two ways. Fast, in cases of unforeseen changes on the supply side and long-term in times where there is not enough wind and sun available to cover the load during a period. So the value of flexibility as an Ancillary Service rises. Today the Energy Only Market (EOM) hardly provides a market for flexibility, but business cases for such Ancillary Services will be crucial for the upcoming system. Focusing on Demand Side Management the essay analyses how a market for this kind of Ancillary Service could be designed. It is based on the study “Demand Side Management in North Rhine-Westphalia: Potentials, Obstacles and Options for Action” [1].