Task 8 – Demand-Side Bidding in a Competitive Electricity Market
Task 8 evaluated and promoted Demand Side Bidding (DSB) as a means of improving the efficiency of the operation of the electricity supply chain. The characteristics, strengths and weaknesses of existing DSB schemes and creating guidelines for the development and enhancement of new schemes was fulfilled.
DSB is a mechanism that enables the demand side of the electricity market to participate in energy trading. More specifically, DSB allows electricity consumers to offer a specific reduction in demand, at a given time, in return for a specified income. DSB can improve the efficiency of the electricity supply chain by increasing competition in the wholesale energy market and by acting as an alternative to conventional generation. For example, DSB can be used to balance electricity supply and demand and also maintain the quality and security of supply. In addition, DSB could have important environmental and energy efficiency benefits in some situations when it is used as an alternative to conventional generation.