Would turkeys vote for Christmas? New entrant strategies and coopetitive tensions in the emerging demand response industry

To enter a market and scale up, entrant firms often need to cooperate with their incumbent competitors, so they are in coopetition with them. Our goal is to increase the understanding of the antecedents of coopetition and the ways in which new entrant firms navigate coopetitive tensions with incumbents. Moreover, we are interested in the impacts that coopetition has on the value creation and value appropriation of new entrant firms. So far, most literature on cooperation and coopetition in energy markets has provided the perspective of the incumbents. To study the issues empirically, we interviewed 15 demand response (DR) entrants. These firms operate in Finnish energy markets, providing automated DR services, in which Finland is a forerunner country. According to our results, collaboration between new entrant DR firms and energy incumbents was needed in order to establish the new markets. In addition, cooperation with incumbents was beneficial to DR entrants since they were able to gain new customers and increase the efficiency of their resource use due to, for example, common technological development activities. We found that the structure of energy markets was an important factor in shaping the market entry of DR entrants. According to our results, new entrants can enter electricity markets without much cooperation with the incumbents, but cooperation is necessary in natural monopoly district heating markets. As new EU regulations will enhance automated DR services, the results of this study have relevance in other EU Member States where automated DR markets have not yet been established.Peer reviewe

Does Knowledge Contribute to the Acceptance of Demand Response?

More flexible demand side would benefit the electricity markets, networks and sustainable power generation in many ways. The success of demand response programs, however, relies on consumer acceptance. This paper reviews previous studies about acceptability of different kinds of residential demand response programs. Furthermore, it discusses whether consumers who are more aware of the principles and benefits of demand response have more positive attitudes towards demand response programs. The results of the literature review and two survey studies suggest that price and security of supply are currently bigger motives to change consumption behaviour than environmental issues and that the savings expected to trigger any action (and to lead to lasting change in behaviour) may be relatively high. Therefore, the framing of demand response programs goals may affect the acceptance. Additionally, consumers seem to prefer simple price structures that remain constant for a long time to more dynamic options

Toward residential flexibility—Consumer willingness to enroll household loads in demand response

Consumers of the future play an important role in the energy system by leveraging their household loads to be flexible through demand response (DR) during a high network stress. This study aims to identify the consumers’ Willingness To Enroll (WTE) their different household loads in DR considering consumer preferences for both financial gains and emission reductions. To study this, a questionnaire survey was administered to 1,468 Finnish residential consumers, and several statistical methodologies were used to draw key findings regarding consumer socioeconomic and demographic characteristics on their WTE their household loads in DR. The key results of the study are: First, among the household loads, heating and electric appliances have a higher consumers’ willingness to enroll than EVs. Second, within the incentives, consumers preferred financial incentives to environmental incentives. Third, the expected compensations for consumers were 100 €/annum for appliances and EVs and 200 €/annum for heating. The results of this study have clear practical implications for energy flexibility in the residential sector. Further, the paper discusses the corresponding policy implications that are essential for a widespread DR adoption in the future.publishedVersionPeer reviewe

Selvitys sähkön omatuotantoon, energiayhteisöihin ja energiahankkeiden lupamenettelyihin liittyvistä kysymyksistä

Tässä raportissa on selvitetty sähkön omatuotantoon ja energiayhteisöihin sekä uusiutuvan energian luvitukseen liittyviä esteitä ja hidasteita sekä energiayhteisöjen potentiaalia. Sähköenergiayhteisöissä hyödyntämätöntä potentiaalia on erityisesti kiinteistön sisäisissä sähköenergiayhteisöissä. Esteenä kiinteistön sisäisen sähköenergiayhteisön kustannustehokkaalle toteuttamiselle on etenkin se, että tuotannon laskennallista jakamista energiayhteisön kulutuspisteille ei voida tehdä käyttäen nykyisiä etäluettavia mittareita, johtuen lainsäädännön esteistä. Lainsäädännön muutosten lisäksi tulee kehittää energiayhteisön toiminnan mahdollistavaa tiedonvaihtoa. Lämpöenergiayhteisöissä esteet ovat lähinnä lämmönlähteiden ja -kulutuksen kohtaamattomuudesta aiheutuvia teknis-taloudellisia esteitä. Lämpöenergiayhteisö voisi syntyä lähinnä uudelle asuinalueelle, jolloin sen syntymistä voidaan edistää jakamalla toimijoille tietoa em. ratkaisun mahdollisuuksista. Suomessa on pyritty määrätietoisesti sujuvoittamaan ympäristöllisiä lupamenettelyjä ja edelleen sujuvoittamisessa nopeiden tulosten saavuttaminen on haastavaa. Uusiutuvan energian direktiivi (REDII) vaatii jäsenvaltioita perustamaan yhteyspisteen avustamaan uusiutuvan energian hankkeiden luvanhakijoita sekä säätää määräajat lupamenettelyjen kestolle. Raportissa arvioidaan toteutettujen uusiutuvan energian hankkeiden määriä, hankkeiden tarvitsemia lupakokonaisuuksia, luvituksen pullonkauloja, REDII:n vaatimuksia hankkeiden luvitukselle ja siihen liittyviä haasteita Suomen lupajärjestelmässä. Erityisiä haasteita REDII:n täytäntöönpanossa liittyy luvituksen määräaikoihin ja hankkeisiin, jotka tarvitsevat useiden eri viranomaisten toimivaltaan kuuluvia lupia.Tämä julkaisu on toteutettu osana valtioneuvoston selvitys- ja tutkimussuunnitelman toimeenpanoa. (tietokayttoon.fi) Julkaisun sisällöstä vastaavat tiedon tuottajat, eikä tekstisisältö välttämättä edusta valtioneuvoston näkemystä

Energiamurroksen ennakoidut vaikutukset 2030: Huipputeho ja varavoima

Tämä case-julkaisu liittyy Suomen Akatemian strategisen tutkimuksen neuvoston rahoittamaan Smart Energy Transition (SET) -hankkeeseen (293405) (www.smartenergytransition.fi). SET-hanke tutkii, miten Suomi voi hyötyä hajautetun ja vaihtelevan uusiutuvan energian ympärille nousevista murroksellisista teknologioista. Kyse on ratkaisuista, joissa energiaa voidaan varastoida tai sen tarvetta ohjata vaihtelevan tuotannon mukaan (kysyntäjousto). Näihin ratkaisuihin liittyvät olennaisesti uudet digitaaliset ratkaisut, kuten esineiden internet. Samalla murrokseen liittyy myös kehitys, jossa rakennusten ja liikenteen energian tarve pienenee, energiaomavaraisuus kasvaa, ja rakennukset ja liikennevälineet muodostavat yhä kiinteämmän osan energiajärjestelmää

A Systematic Review of European Electricity Market Design Options

The European electricity market model continues to evolve in the face of new challenges. This systematic literature review aims to assess the status of research and discussion on the current model and its market mechanisms. In addition, it aims to ascertain the kinds of modelling tools that have been used to model market mechanisms or formulate proposals for changes to current practice. The results show that the challenges of individual market mechanisms have been identified quite extensively in the research sample. However, the number of papers identified for inclusion in the systematic literature review was quite small, from which it can be concluded that there are surprisingly few publications focusing on this particular topic. Nevertheless, the trend indicates a probable increase in research in the subject area in the future. The general standpoint among researchers seems to be that the goals set by the EU are, as it were, a law of nature that cannot be deviated from. Consequently, new radical change proposals or comprehensive reforms were not encountered in the study. In addition, it was found that optimization was the most commonly used modelling method in the papers included in the literature review

Multinational citizen consultation results database

<p>This report describes the contents, planning and implementation of the GRETA multinational citizen consultation (GRETA multinational survey). The overarching goal of the survey is to improve the understanding of the conditions and barriers for the emergence of energy citizenship, i.e., a form of active participation within energy systems that ultimately supports local and global decarbonisation goals. The survey fieldwork started on 29th of September 2022, and the resulting data will at a later stage be made available free of charge via the GRETA Zenodo community.</p&gt

Customer perspectives on demand response in Europe: a systematic review and thematic synthesis

AbstractResidential demand response is increasingly recognized as a valuable tool to increase power-system flexibility and to improve integration of renewable energy sources in the sustainable energy transition. However, low customer participation and engagement is one of the barriers hindering widespread implementation of residential demand response. To improve understanding of the factors influencing customer engagement in residential demand-response programs, this article investigates associated customer experiences and attitudes. This study is based on a systematic review and thematic synthesis of findings from past demand response-pilot projects. By synthesizing findings from multiple sources, the article provides insights into the customer perspective to inform the development of customer-oriented demand-response services and products. The results indicate that customer engagement in demand-response programs is influenced by multiple factors, including motivation, interaction and communication, and feedback. Particularly highlighted is the value of social interaction and support as well as the importance of customer education and easily interpretable information. To promote customer engagement, the electric utility industry should place more focus on building customer relationships and integrating customer perspectives into the design of demand-response programs

‘Life after Nokia?’ Business model innovation and niche upscaling in the emerging Finnish demand response industry

Demand response (DR) can be considered a complementary innovation with the potential to accelerate the transition towards renewable energy sources. Various business models are developing around this technology to provide value to both firms and consumers. Building on the multi-level perspective (MLP) on socio-technical change and previous studies that have introduced the concept of business models in sustainability transition research, we investigate the role of different business model innovation patterns in niche upscaling and breakthroughs. Empirically, the study relied on 25 semi-structured interviews with representatives of Finnish companies operating in the emerging DR industry. It identified three main business model innovation patterns, which are labelled as follows: 1) phoenix rise, 2) business model expansion, and 3) incumbent catch-up. The analysis of these business model innovation patterns revealed that niche–regime interaction is not fixed, but rather, can change over time from adaptive to potentially transformative according to the changes in firms’ business model. Moreover, niche–regime interaction occurs in a multidirectional rather than unidirectional way, that is, not just from niche to regime but also from regime to niche and from alternative regime to niche