A delicate dance: Value-added services and electricity security in decentralized systems

Abstract

While the impact of liberalized and distributed energy systems (DES) on power systems and electricity security is well-documented, the role of small non-energy actors (NEAs) remains under-explored. These businesses offer electricity services as value-added services (VAS) alongside their core operations, often without formal classification or regulation within the energy sector. They may directly serve consumers or support energy actors such as aggregators and utilities by providing essential services like energy storage and distributed system maintenance. While NEAs can enhance market agility and competitiveness, they may also pose challenges to electricity affordability, reliability, and accessibility. This future-oriented study employs the Delphi method and an expert workshop to examine the implications of NEAs’ participation in DES. Findings indicate that existing policies lack effective mechanisms to govern DES involving multiple NEAs, particularly as their services become embedded in the electricity supply chain. Key concerns include NEAs' short-term focus, limited expertise in electricity markets, and unfamiliarity with power system regulations. The study recommends a balanced regulatory framework that fosters market openness and mitigates the identified concerns. Recommendations include defining clear service-level policies, developing business guidelines to ensure transparency, and establishing competency standards for these new actors.